The Iranian commerce minister said all contracts and negotiations with Danish commercial firms are suspended until further notice and Iranian companies have been asked to find substitutes for goods imported from Denmark.
He said Iran will substantially raise charges on Danish-flagged vessels docking at Iranian ports. Kazemi also said Iran "is prepared to substitute Danish shipping companies."
The largest shipping firm in the world, and Denmark's largest publicly held company, is AP Moller-Maersk A/S (MAERSK-B.KO).
A Maersk spokesman declined to comment on the minister's remarks.
Kazemi said Danish government officials are adding insult to injury by refusing to apologize for the blasphemous act "under the pretext of freedom of expression."
The publication of about a dozen cartoons of Islam's Prophet Muhammad, first published in a Danish daily in September and reprinted in some European media earlier this month, have angered the Iranian government.
Iran's annual trade volume with Denmark totals around $285 million of which a small fraction, around $4 million, is the volume of Iran's export to Denmark.
Iran's President Mahmoud Ahmadinejad asked the commerce minister to form a council to review all trade and economic transactions and agreements with Denmark and other European countries whose newspapers have published the cartoons.
Hundreds of Iranian protesters staged a demonstration in front of the Danish embassy in the Iranian capital late Monday.
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