Boeing Clinches $16 Billion Iran Deal

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Key Takeaways:

  • Boeing announced a $16 billion deal to sell 80 commercial airplanes to Iran, including 737 Max and 777x models, marking the largest U.S.-Iran business transaction since sanctions were lifted and projected to support nearly 100,000 U.S. jobs.
  • The deal faces significant political opposition within the U.S., with the House having already passed a bill to block it and the Senate expected to vote on similar legislation.
  • The incoming Trump administration's stance on the deal is uncertain, as President-elect Trump has previously criticized other Boeing contracts (like Air Force One) and vowed to reduce federal spending.
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Boeing will sell 80 airplanes to Iran, the company announced on Sunday, closing a deal worth about $16 billion. The new orders, to start in 2018, will support nearly 100,000 jobs in U.S. plants, Boeing said. The sale includes the 737 Max and the 777x, both of which are still in development, as well as the 777-300ER. It’s the biggest business deal with Iran by any U.S. company since President Obama lifted sanctions against the country in January. The U.S. House already has passed a bill seeking to block the sale, and the Senate is expected to vote on a similar bill soon. It’s not yet clear if the Trump administration will back the deal when they sign on in January.

President-elect Trump tweeted last week that he would like to cancel a $4 billion contract with Boeing for the next Air Force One, and he also tweeted over the weekend about the military F-35 program, calling the costs “out of control.” After Jan. 20 “billions of dollars” will be saved on military and other purchases by the federal government, he said.

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