The head of Iran-Italy Chamber of Commerce said Italy has agreed to revive a number of its bankrupt banks with euro so that they could trade with Iran.
"Senior Italian banking managers have agreed to revitalize the activities of several bankrupt banks with help of euro so that they can cooperate with Iran (during the sanctions era)," Ahmad Pourfallah said, Tasnim news agency reported.
Noting that there are many banks in Italy, which are not dependent on the US dollar, he said, "The banks will do their transactions with Iran in euro".
The official added that a number of Italian banks are currently working with Iran despite the returning US sanctions.
Pourfallah said the government should switch its focus on small and medium-sized enterprises (SMEs) in Italy instead of major enterprises in order to be able to manage the situation under sanctions.
On August 6, the United States reimposed stiff economic sanctions on Iran, ratcheting up pressure on the Islamic Republic despite statements of deep dismay from European allies, three months after President Donald Trump pulled the US out of the 2015 nuclear deal between Tehran and world powers.
A first set of reimposed US sanctions affect financial transactions that involve US dollars, Iran's automotive sector, the purchase of commercial planes and metals including gold.
A second batch of US sanctions targeting Iran's oil sector and central bank are to be reimposed in early November.
Trump warned that those who don't wind down their economic ties to Iran "risk severe consequences."