London: The European Union has taken action to try to prevent the collapse of the Iran nuclear deal, adopting a new rule banning European companies from complying with US sanctions and allowing the European Investment Bank to fund projects in Iran.

But it will leave many companies with a painful choice whether to follow EU or US rules on doing business with Iran.

The decision by the European Commission, the EU’s executive body, is provisional as it requires approval from the European Parliament and the heads of EU member states.

However, it is a strong signal of Europe's desire to rescue the crumbling 2015 nuclear deal, after Tehran announced plans to increase its uranium enrichment capacity with new centrifuges.