Trumps administration decertify U.S.’s 2015 agreement
Boeing to Iran: Trump decertifying Iran’s agreement may affect business

U.S. President Donald Trump is threatening to scrap the 2015 agreement which immobilized Iran’s nuclear program. If the agreement takes place, it will hamper Boeing’s sale to Iran.

The U.S. aircraft maker has agreed to supply 80 new planes to Iran Air and another 30 to Iranian Carrier, Aseman. The total value of those deals amount to $20 billion.

Boeing is currently the best performing stock in Dow Jones Industrial Average over the last year. The company’s performance doubled compared to their nearest competitor.

The price target on the stock in the month of September was $315 per share, almost 25 percent than it is currently.

“If Boeing isn’t able to deliver the airplane to Iran, it would have some impact on its stock. This could be a bigger issue for 2019 than for 2018,” said Cai von Rumhr, Cowen aerospace analyst.

According to Mohammad Zarif, Iran’s foreign minister, if the U.S. leaves the deal, Iran could also exit. This could cause the situation to revert to where it stood before the agreement was signed in 2015.

If Trump “decertifies” the nuclear deal, the U.S. will be removed from the deal. However, decertification do not necessarily ruin the business ties.

Europe and Asia have improving business ties with Iran and officials from both the continents are urging the U.S. to stay in the deal.

Iran is desperate for new airplanes. Sanctions have ruined the country’s redundant passenger fleet. The Iranian government blamed the sanctions due to several plane crashes.

A spokesperson for Boeing said to the media, the company has followed the lead of the U.S. government in all the dealings. Scrapping off the agreement will make it unclear of the rules and regulations.

The defense forces are concerned that Iran could take the passenger plans and convert them into troop and weapon carriers for its army. Iran could use it to aid its key ally in the region, Hezbollah.