Boeing: US leaving Iran deal won't hurt 737 production

  • Boeing: US leaving Iran deal won't hurt 737 production

Boeing: US leaving Iran deal won't hurt 737 production

Sanctions will be reimposed subject to certain 90 day and 180 day wind-down periods. Until now, the U.S. was part of that deal.

On May 8, President Trump pulled the United States out of the worldwide nuclear deal with Iran, raising the risk of conflict in the Middle East, upsetting European allies and casting uncertainty over global oil supplies.

Moreover, the new USA ambassador to Berlin warned German companies to halt activities in Iran. The EU has in the past found this unacceptable, he added, though it was unclear still how European leaders would respond.

Iran, which had ambitions to turn Tehran into a regional aviation hub, has been denied the opportunity to renew its ageing fleet of aircraft after the U.S. withdrawal from a nuclear pact with the Islamic Republic barred plane sales by Boeing and Airbus.

Another company that had done business with Iran Air, French-based Airbus, also had agreed to sell 100 planes to the company for $19 billion. Boeing has a big backlog on orders anyway, so it never got round to making its planes for Iran Air (80 aircraft for $17 billion) or Aseman Airlines (30 for $3 billion).

"We will consult with the U.S. Government on next steps".

During the last round of sanctions, India enjoyed waivers allowing limited Iranian oil imports paid for in rupees instead of USA dollars.

The aerospace giant had said the Iran contracts would support tens of thousands of jobs.

China's response to the US sanctions is unclear.

It has delivered one A321 and two A330s to Iran Air since the 2016 deal.

Speaking of energy, France's Total has a $2 billion deal with China's CNPC to develop Iran's South Pars gas field.

A senior official with a Chinese oil major, who declined to be identified because he is not authorised to speak to the media, said new sanctions would hurt Chinese refiners by pushing up the price of crude. ATR has delivered eight planes to Iran Air and said it had no comment on the U.S. announcement. Fellow automaker Renault signed a $778-million deal to build 150,000 cars a year at a factory outside of Tehran but has declined to comment so far.

Foreign ministers of the European countries involved in the Iran nuclear deal will hold a meeting with Iranian representatives to discuss the future of the agreement.

Iran President Hassan Rouhani mirrored the sentiment, saying he was happy to do business with the other partnering countries.

The Trump administration moved Tuesday to reimpose sanctions on the Islamic Republic that had been lifted as part of a multinational nuclear pact negotiated during the Obama administration. "They worked last time".

"Japan and South Korea may comply with the proposed USA reimposition of Iranian sanctions on the concern of losing the US security umbrella vis-à-vis North Korea", Khoman said.