US Companies Will Not Benefit From Iran Nuclear Deal

Despite the fact that the United States led the negotiations with Iran to sign an agreement to limit nuclear weapons proliferation, US companies will not benefit economically from that agreement. Companies based in other countries, such as in Europe, Russia and China, will however be able to gain financially from the accord.

This is due to the fact that much of the sanctions placed on Iran from the United States are decades old, ever since relations between the two countries have been strained. The US has imposed an embargo on Iran since 1995, aimed at checking the development of weapons of mass destruction and missiles, Iran’s support for terrorism around the world, and human rights abuses.

During the recent negotiations between the Obama administration and Iran the US stuck to its position of only lifting sanctions connected to nuclear proliferation, despite Iran insisting that the US lift all sanctions immediately. In the end, though, due to high pressure from Iran and others to sign the deal, the US backed down and agreed to end the arms embargo after five years and the missile embargo after eight years. The remaining US sanctions will stand.

In addition, the nuclear-related sanctions that the US will end are on foreign, and not US companies. The sanctions prohibit non-US companies from investing in the oil sector of Iran, trading in oil, and financing those transactions. Doing business with Iranian banks and other companies connected to the sanctions will also be prohibited.

The bottom line is that US companies will still not be allowed to do business with Iran,  even after the accords are signed, except in very limited situations.

Alison Meadows

About Alison Meadows

Alison Meadows has a PHD in Economic Trends in Modern Times and is a known writer who focuses on hedge fund investments. Meadows, her husband, and three kids live in Boston, where she grew up and attended college. Contact Alison at alison[at]businessdistrict.com