The Trump administration this week announced it will withdraw the United States from the nuclear deal with Iran, officially known as the Joint Comprehensive Plan of Action (JCPOA), and will re-impose economic sanctions on the nation. The Wall Street Journal reports that, while it is unlikely to affect large U.S. banks, the execution of sanctions is likely to hamper business in Iran for smaller European banks, many of which tentatively re-entered the market through joint ventures and investment fund launches following the 2015 nuclear agreement.

Pillsbury partner Matthew Oresman tells WSJ that the threat of being cut off from the U.S. banking system almost certainly will keep those international banks from continuing to invest in Iranian business.

“European banks are going to be less and less inclined to process any non-U.S. dollar transactions going in and out of Iran,” he said. “It definitely puts a chilling effect on these sorts of investments.”

Read the full article on The Wall Street Journal (subscription required), and learn more about the U.S.’s withdrawal from the JCPOA on Pillsbury’s Global Trade & Sanctions blog.