DUBAI (Reuters) - Iran said on Thursday a new European mechanism to facilitate non-dollar trade with the country was a first step for the European Union to fulfill its commitments under a nuclear deal between Tehran and major powers, state television reported.

France, Germany and Britain have set up the mechanism in an effort to circumvent U.S. sanctions on Iran, though diplomats say it is unlikely to yield the big commercial transactions that Tehran says it needs to keep the nuclear deal afloat.

“It is a first step taken by the European side ... We hope it will cover all goods and items,” Iranian Deputy Foreign Minister Abbas Araqchi told state TV.