Can you imagine investing in a fund tied to Iran?

Investing in these funds is broadly prohibited for U.S. investors, and there is no indication that will change soon. But for Europeans, it can be done—within limits—following the lifting on Jan. 16 of the nuclear-related sanctions imposed on Iran by an international coalition. And the strong showing of Iranian moderates in national elections last month may encourage interest in the country.

Iran has a large, diversified economy and a stock market, and there are new funds that allow some global investors to put their money there.

However, American individuals and entities are still prohibited from nearly all dealings with Iran, with limited exceptions such as the export of food and medicine to the country. That’s because of U.S. sanctions still in place related to human rights, terrorism and Iran’s ballistic-missile program. In fact, new sanctions tied to the ballistic-missile program were imposed on Jan. 17.

European investors have a much freer hand, but they need to be wary of some remaining European Union sanctions. In addition, even people who aren’t American citizens or living in the U.S. are subject to certain remaining U.S. sanctions—for example, prohibitions against dealings with designated Iranian individuals and entities.