US says banks won’t be punished for lawful business in Iran

LONDON — Secretary of State John Kerry tried Thursday to reassure European banks they won’t be penalized for conducting or facilitating business with Iran, as he worked to address Tehran’s grievance that businesses are still staying away despite the nascent nuclear deal.

At an unusual meeting in London, the top U.S. diplomat joined Britain’s top commerce official to challenge what Kerry called “misinterpretations or mere rumors” about U.S. sanctions on Iran, the most sweeping of which were lifted in exchange for Iran rolling back its nuclear program.

[...] the U.S. maintains a prohibition on Iran accessing the American financial system or directly conducting transactions in U.S. dollars, fueling confusion and practical impediments given that international transactions routinely cross through the U.S. banking system.