Trade: Firms suffer blow on Iran contracts
Global companies that made big bets on doing business in Iran are poised to lose billions of dollars in contracts after President Trump’s decision this week to reimpose sanctions on Tehran, said Ed Crooks and Sam Fleming in the Financial Times. The U.S. company “with the most to lose” following Trump’s withdrawal from the 2015 Iran nuclear deal is Chicago-based Boeing, which has signed deals to sell about $20 billion worth of commercial planes to two Iranian airlines. Boeing’s European rival, Airbus, which uses many U.S. parts in its aircraft, will be hit even harder: It has contracts with Iran Air worth up to $27 billion.
European firms “plunged back into Iran more quickly than their American rivals” after the nuclear pact took effect, said Benoit Faucon and Sarah Kent in The Wall Street Journal, hoping to tap a largely untouched market with the potential for fast growth. Germany’s Daimler and Siemens and the British-Dutch energy company Royal Dutch Shell are now scrambling to reassess their strategies and are “weighing contingencies,” including potentially abandoning their investments. French oil giant Total, which has a $1 billion deal to develop an offshore natural-gas field, is lobbying French officials to obtain a U.S. waiver for the project.