The development will further weaken foreign investment in Iran.

Bloomberg has reported, citing a U.S. official familiar with the matter at hand saying, Volkswagen AG will put an end to the bulk of its operations in Iran.

The Trump administration has managed to persuade Volkswagen to comply with U.S. sanctions on Iran, said Bloomberg. Richard Grenell, the U.S. Ambassador to Germany led the talks with Volkswagen.

However, Volkswagen will continue to do business in Iran, but only on humanitarian grounds.

The White House and Volkswagen were not immediately available for comment on the report.

In May 2018, U.S. President Donald Trump pulled the United States out of the landmark 2015 nuclear agreement pact with Iran and has re-clamped sanctions on Tehran.

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