WASHINGTON, DC: The Trump administration is closely eyeing efforts in Europe to set up an alternative money payment channel to ease doing business with Iran and avoid running afoul of sanctions the US has levied on the Islamic republic.

The White House is putting the Europeans on notice, saying that if they try to do an end-run around US sanctions on Iran, they will be subject to stiff fines and penalties. Unfazed, the European Union is marching forward with the plan, which, if implemented, could further strain trans-Atlantic relations.