Licenses for Boeing Co
Trump said he would reimpose U.S. economic sanctions on Iran, which had been lifted under the agreement he has harshly criticized.
The pact, worked out by the United States, five other world powers and Iran, lifted sanctions in exchange for Tehran limiting its nuclear programme. It was designed to prevent Iran from obtaining a nuclear bomb.
IranAir had ordered 200 passenger aircraft: 100 from Airbus SE
Boeing agreed in December 2016 to sell 80 aircraft, worth $17 billion at list prices, to IranAir under an agreement between Tehran and major world powers to reopen trade in exchange for curbs on Iran`s nuclear activities.
The U.S. Treasury Department, which controls licensing of exports, said the United States will no longer allow the export of commercial passenger aircraft, parts and services to Iran after a 90-day period.[nL1N1SF2CO]
European planemaker Airbus said on Tuesday before the Mnuchin news conference that it would study Trump`s decision, adding that it would take some time.
Following the 90-day period ending Aug. 6, the Treasury also said it would revoke a licence that allowed U.S. companies to negotiate business deals with Iran. The Boeing licence had been valid until September 2020, a person involved in the deal said.
"As we have throughout this process, we’ll continue to follow the U.S. government’s lead," Boeing spokesman Gordon Johndroe said before Mnuchin`s comments.
Boeing Chief Executive Dennis Muilenburg said last month the airplane manufacturer has no Iranian deliveries scheduled this year. He said Boeing`s 777 production plan "is not dependent on the Iranian orders." Muilenburg is set to address the Economic Club of Washington on Wednesday.
The IranAir order included 15 Boeing 777-300ER long-range jets. Industry sources said Boeing had been tentatively due to send Iran three 777s this year but has reshuffled deliveries with other buyers.
Shares of Boeing closed down $2.06, or 0.6 percent, at $338.37 on the New York Stock Exchange after Trump`s announcement.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)