German Chancellor Angela Merkel is signaling it won't be feasible to offer wide-ranging compensation to European companies affected by U.S. sanctions over Iran's nuclear program.

President Donald Trump last week withdrew the U.S. from the 2015 Iran nuclear deal, but European signatories vowed to salvage it. Merkel said Thursday after EU leaders met in Bulgaria that "all European Union member states still stand by this agreement."

But she was cautious about possible compensation for companies that do business with Iran. She said that "we can see whether we can give small and medium-sized companies certain relief. That is being examined."

However, Merkel added: "As for compensating all businesses in a comprehensive way for such measures by the United States of America, I think we cannot and must not create illusions."