Back to top

Image: Bigstock

Iran Reaches Billion Dollar Deal With Boeing (BA) To Buy Planes

Read MoreHide Full Article

Iran has reached a historic deal with Boeing (BA - Free Report) to purchase passenger planes for its civilian fleet, according to the country’s Fars New Agency. If the deal goes through, it will mark the first time that new American planes will fly over Iran since the 1979 Islamic Revolution.

The agreement is expected to be for more than 100 Boeing planes and worth several billions of dollars. This would be the largest transaction between a U.S.-based company and Iran since the lifting of sanctions associated with the nuclear deal six months ago.

“We have been engaged in discussions with Iranian airlines approved by the [U.S. government] about potential purchases of Boeing commercial passenger airplanes and services," the company told USA Today. “We do not discuss details of ongoing conversations we are having with customers, and our standard practice is to let customers announce any agreements that are reached.”

Iran’s Fars News Agency is reporting that the country’s minister or roads and urban development said that the specific details of the deal will be announced in the coming days.

Regardless, remaining sanctions that bar the use of dollars in trade with Iran would mean that any agreement between a U.S. company and Tehran would require approval by the U.S. government. Congressional Republicans were very outspoken in their opposition to Obama administration’s deal with Iran, and any move towards normalized relationships with the country is sure to face scrutiny.

In a press conference Tuesday, State Department spokesman John Kirby fielded questions about a potential Boeing-Iran deal.

“I would remind you that… we issued a statement of licensing policy that allowed for case-by-case licensing of individuals and entities seeking to export, re-export, sell, lease, or transfer to Iran commercial passenger aircraft and associated parts and services exclusively for commercial passenger aviation,” Kirby said. “As we’ve said before, we’re not going to stand in the way of permissible business under the JCPOA with Iran, and we are going to do what we can to meet our commitments as long as Iran continues to meet their nuclear-related commitments.”

Although we will wait on an official announcement by Iran, it now looks like the only thing in between this deal will be U.S. approval. With the current partisan deadlock in Washington, who knows what will come of this.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 DaysClick to get this free report >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


The Boeing Company (BA) - free report >>