Pullout from Iran deal strikes a blow to Boeing

Iran Air 747 jet

Iran Air already operates Boeing planes such as this 747 jet. (Aero Icarus Photo – CC BY-SA 2.0)

A broad range of aerospace and defense stocks rose today as markets put a martial spin on President Donald Trump’s decision to make a “hard exit” from an international nuclear non-proliferation deal with Iran. That’s not surprising — nor is it surprising that Boeing’s share price fell instead.

Trump’s intention to reimpose trade sanctions almost certainly dooms Boeing’s $16.6 billion deal to sell 80 jets to Iran Air. That sale agreement covered 50 single-aisle 737 MAX jets and 80 wide-body 777s. A separate memorandum of agreement called for Boeing to sell 30 737 MAX jets to Iran Aseman Airlines for a list-price total of $3.4 billion.

The loss is tempered by the fact that Boeing wasn’t counting on the deals going through.

Get the full story on GeekWire.

About Alan Boyle

Award-winning science writer, creator of Cosmic Log, author of "The Case for Pluto: How a Little Planet Made a Big Difference," president of the Council for the Advancement of Science Writing. Check out "About Alan Boyle" for more fun facts.
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