An EU court has ruled that the bloc had unfairly frozen the assets of an Iranian bank for six years, dismissing an appeal brought by the European Council.
The European Court of Justice said on February 18 that Bank Mellat's funds should not have been frozen between July 2010 and January 2016.
The court said it rejected the logic tying the bank to Iran's nuclear and missile programs.
The European Council froze the funds of a number of Iranian financial entities from 2010 to combat Iranian activities that could have led to it developing nuclear weapons.
In 2013, the EU General Court annulled the measures concerning Bank Mellat, prompting an appeal to the European Court of Justice.
Bank Mellat's lawyers have said the ruling would have major implications for legal action it could take over losses and damage to its reputation.
The EU lifted economic sanctions against Iran last month as part of an international agreement over Tehran's nuclear program.
Based on reporting by AP and Reuters