Boeing Signs Massive Deal with Iran, US Treasury May Help

Posted: Jun 21, 2016 9:30 AM

Boeing Co. has signed an agreement with Iran Air "expressing the airline's intent" to conduct a massive $25 billion contract, according to the Associated Press. This marks the Islamic Republic's first major deal with an American company following the controversial nuclear deal.

“Boeing confirms the signing of a Memorandum of Agreement with Iran Air expressing the airline’s intent to purchase Boeing commercial passenger airplanes,” Boeing's official statement said.

Two U.S. congressmen, Jeb Hensarling (R-TX) and Peter Roskam (R-IL), sent a letter last week to Boeing expressing concern that the plane deal could aid Iran’s military actions. “Iran’s commercial aviation sector is deeply involved in supporting hostile actors,” they said in the letter.

However, the Chicago-based manufacturer said that it signed the Iran Air agreement "under authorizations from the U.S. government following a determination that Iran had met its obligations under the nuclear accord reached last summer."

The U.S. Treasury Department may also assist in financing the deal.  John Smith, acting director, said last week at the Atlantic Council in Washington, D.C. that “it is possible for authorized deals to get financing.”