President Donald Trump withdrew from the Iran nuclear deal on Tuesday, vowing to reinstate the “highest level” of sanctions on the Iranian regime – which could impact a number of multinational companies, including American aerospace giant Boeing.
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While Boeing has a multibillion deal to sell commercial aircraft to Iran Aseman Airlines, it said in reaction to Trump’s announcement on Tuesday that it would work with the government regarding the future of its deal.
“Following today’s announcement, we will consult with the U.S. Government on next steps. As we have throughout this process, we’ll continue to follow the U.S. Government’s lead,” Gordon Johndroe, Boeing’s vice president of government operations communications, said in a statement.
The U.S. Treasury Department said after a 90-day wind-down period, which ends on Aug. 6, it would revoke authorization to export commercial passenger aircraft and related parts to Iran.
In April 2017, Boeing signed a $3 billion to sell 30 jetliners to Iran, on top of a previous deal, valued at nearly $17 billion.
During the company’s most recent earnings call, CEO Dennis Muilenburg acknowledged risks associated with the Iranian aircraft deal, stating that no deliveries were scheduled for the current year and its overall outlook was “not dependent on the Iranian orders.”
At the White House on Tuesday, Trump suggested sanctions could extend beyond Iran under certain circumstances.
“Powerful sanctions will go into full effect,” Trump said, adding that other nations that continue to deal with Iran could also be sanctioned by the U.S.
The imposition of additional sanctions against Tehran could have implications for a number of multinational companies, aside from Boeing, which have rushed to tap the Iranian market since sanction relief was provided in 2015 under the Joint Comprehensive Plan of Action, as the Iran deal is known.
Airbus, Royal Dutch Shell and Total also have deals in the country, which could be affected by the change in U.S. policy.
Former Shell Oil President John Hofmeister said during an interview with FOX Business on Tuesday that reinstating sanctions shuts Western oil companies out of the region, giving more power to other dominant world powers.
“That gives [Russia and China] more hegemony in the region where they can, as we know, become a real trouble maker and Lord knows what that will do to the geopolitical issues,” he told FOX Business’ Stuart Varney.
Last year, Trump refused to certify the Iran deal. In January, he implemented sanctions against 14 Iranian people and entities, some involved with Iran’s ballistic missile program.