South Korea has exited another Iranian downstream project as US sanctions ratchet up. Hyundai Engineering & Construction this week cancelled an agreement with Ahdaf Investment Company, a subsidiary of Tehran’s Petroleum Industry Pension Fund (PIPF), for building a $3.2bn petrochemicals complex.

This marks the third exit by a Korean firm from Iran projects after US President Donald Trump decided in May to pull out of Iran nuclear accords. Renewed US sanctions against Iran will take...