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

Aerospace and science editor for GeekWire, 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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