Boeing Will Lose Out On $20 Bln In Iran Deals

(RTTNews) - Boeing Co. (BA) stands to lose about $20 billion in business with Iran after the U.S.'s controversial withdrawal Tuesday from the 2015 nuclear agreement with the Middle East nation, the Wall Street Journal reported.

Boeing has agreements to sell 110 planes worth roughly $20 billion to Iranian airlines, based on list prices. The U.S. withdrawal, which pledges punishment for banks and businesses doing transactions in Iran, stretches to Boeing's French rival Airbus SE, which had a multibillion-dollar sale planned, and to parts maker General Electric Co. (GE).

Licenses for Boeing and Airbus to sell passenger jets to Iran will be revoked, U.S. Treasury Secretary Steven Mnuchin said after President Trump made his announcement to pull the U.S. out of what he considers a "defective" Iranian nuclear deal, defying allies and despite warnings that it could ratchet up tensions in the volatile region.

While new contracts are banned, companies and banks will have 90 days or 180 days to wind down their ties before risking penalties, the administration said.

IranAir had ordered 200 passenger aircraft: 100 from Airbus, 80 from Boeing and 20 from Franco-Italian turboprop maker ATR. All the deals are dependent on U.S. licenses because of the primary use of American parts in commercial planes.