PSA shares were down 1.5 percent in early session trading, while rival carmaker Renault, which also has business in Iran, declined by 0.3 percent.

Airbus fell 1.1 percent, although shares in oil group Total - which also does business in Iran - rose 0.7 percent as oil prices rose following Trump's announcement. [O/R]

(Reporting by Sudip Kar-Gupta; Editing by Bate Felix)