Boeing, Airbus, GE among biggest losers from US Iran shift

European businesses in firing line of Iran sanctions

European businesses in firing line of Iran sanctions

The Iranian orders represent a small percentage of the massive aircraft backlogs of both manufacturers. Then again, according to Iran and countless independent observes, Iran's nuclear program has already stopped, meaning Trump himself deliberately set up the straw-men so he can take them down, and upon "revising" the deal, reincarnate it, only this time it will be "Trump's Iran Deal", not "Obama's Iran Deal".

In Germany, the US ambassador, Richard Grenell, said via Twitter that "German companies doing business in Iran should wind down operations immediately". "As we have throughout this process, we'll continue to follow the USA government's lead", the company said.

But perhaps no company has benefited as much from the Iran deal's lifting of sanctions as the French oil giant Total, which signed a $2 billion deal to develop the South Pars oil field, shared between Iran and Qatar.

At list prices, those are valued at just shy of $20billion. Over 19.6 billion dollars 110 aircraft were to be purchased from Boeing.

Boeing's CEO says the Trump administration's plan to abandon the Iran nuclear agreement will not hurt the company's production of 737 passenger jet aircraft.

"We have no Iranian deliveries that are scheduled", Muilenburg told Wall Street analysts on Boeing's first-quarter earnings conference call. He said Boeing's 777 production plan "is not dependent on the Iranian orders".

"German companies doing business in Iran should wind down operations immediately", Trump's new ambassador to Germany, Richard Grenell, a former George W. Bush aide, Harvard graduate, and Fox News commentator, said in a statement on social media.

But Airbus likely won't be able to take further competitive advantage.

"Under the original deal, there were waivers for commercial aircrafts, parts and services, and the existing licenses will be revoked", the Treasury secretary, Steven Mnuchin, said on Tuesday, in reference to Boeing and Airbus.

"We're carefully analysing the announcement and will be evaluating next steps consistent with our internal policies and in full compliance with sanctions and export control regulations", Airbus communications chief Rainer Ohler said.

Finally, addressing the underlying futility of the sanctions, the head of MENA research at MUFG Bank, Ehsan Khoman, said that China, India, Russia and Turkey will likely oppose US sanctions and keep current levels of Iranian crude purchases, even as the occasional USA allies - including Japan and South Korea - may comply with USA sanctions because of concerns they could lose US security umbrella against North Korea.

"It is now a better market for arms sales, period", Mr. Aboulafia said.

While the Airbus deal is not necessarily totally dead, prospects for filling it are "not great", he said. A cancellation of Airbus's Iranian orders - which it booked early to pip Boeing in the 2016 order race - could wipe out its entire tally of 86 net orders for this year.

European leaders now plan to engage directly with Iran in hopes of keeping alive the deal, which placed limits on Iran's nuclear program in exchange for lifting worldwide sanctions. "Iran probably feels more comfortable trading with Europe". Siemens, for instance, has done on-and-off business in Iran for more than a century, but its revenue there is less than 1 percent of its total.

Boeing never closed its transaction with Iran Air, and downplayed the historic deal's prospects after Trump took office.

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