$Billions on the Line if U.S. Pulls out of Iran Nuclear Deal
CBJ — International manufacturers are watching with baited breath as literally billions of dollars are on the line as U.S. President Donald Trump decides whether to pull America out of Iran’s nuclear deal with other major world powers.
Almost all multinational corporations do business or banking in the U.S., regardless of where they are headquartered. At most risk in terms of dollar value are such industries as transportation and natural resources.
The 2015 Iran nuclear deal lifted harsh economic sanctions that had kept Iran out of international banking and the global oil trade. In return, Tehran limited its enrichment of uranium, reconfigured a heavy-water reactor so it couldn’t produce plutonium and reduced its uranium stockpile and supply of centrifuges.
For Western businesses, the deal meant access to Iran’s market of 80 million people. Most prominently, airplane manufacturers rushed in to replace the country’s dangerously outdated and run-down civilian fleet.
In December 2016, Airbus Group signed a deal with Iran’s national carrier, IranAir, to sell it 100 airplanes for around $19 billion at list prices. Boeing later made its own deal with IranAir for 80 aircraft with a list price of some $17 billion, promising that deliveries would begin in 2017 and run until 2025. Boeing separately struck another 30-airplane deal with Iran’s Aseman Airlines for $3 billion at list prices.
Boeing has yet to deliver a single aircraft to Iran.