The Total's move will be a big blow to Iran's energy industry
France's oil giant Total won't invest in Iran because it is too risky.
The company was due to develop gas fields in the south of the country, but Total's head Christophe de Margerie said it would not go ahead, the Financial Times reported.
The announcement comes a day after Iran test-fired a series of missiles, amid weeks of rising tensions with Israel and the US over its nuclear ambitions.
Analysts say the move will be a big blow to Iran's energy industry.