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Tuesday, 1 July 2025

Hidden reason for Trump leaving Iran deal

Citing “Iran Deal”, signed on 14/7/2015 in Vienna by the Permanent Five Members of UN Security Council plus Germany with Iran was not comprehensive, Trump left the deal on 8/5/2018. He alluded couple of reasons for his action but kept the real reason close to his chest:

It was not surprising that Trump found fault with the deal. He has been too scornful of the Iran Deal from the beginning. He bemoaned the fact that it did not address the concerns of Israel as regards to Iran’s missiles capacity and the perceived notion of Iran destabilising the Middle–Eastern theatre. For all purposes this is just smoke screen.

During the pendency of Iran Deal, Boeing negotiated with Iran Air for the sale of 80 Boeing 787 planes with a booking value of USD 16 Billion to be supplied over ten years that would provide jobs for more than 100,000 people. When the deal was ditched Boeing reported that the value was around USD 20 Billion. That could have been a real tangible benefit for USA.

Yet, Trump has a different calculation. His business strategy was two pronged: One, get the best out of the Iran Deal for USA. Two, deny the plums to European business sector. That is geoeconomics proper!

He was indeed right. Immediately after the deal was initialled Airbus signed USD 25 Billion deal to supply 118 planes including 73 wide body jets and 45 narrow body jets. Highlight of this is the proposed sale of 12 A380 superjumbos. By the way, A380 was hitherto below the break-even point. Undoubtedly, Iran was giving a boost not only to Airbus but also to A380.

Yet another remarkable European performance was in the cross hair of Trump. Trade between Iran and Europe shot up by 50% as regards to oil exports to countries such as Italy, Greece and Spain. Moreover, business openings for many European industries started to see the sunlight, mostly due to increased sale of oil by Iran exceeding 2.5 million bpd.

Trump wanted the cake and eat it alone. What transpired was Europe surging ahead in ordering more petroleum whereas US exports of crude oil to Europe starting to plummet.

Realizing, he must navigate business strategy amid geoeconomics the Deal Maker Donald Trump pushed the President Donald Trump to scupper the JCPOA alias Iran Nuclear Deal alias simply “Iran Deal“ on May 8th of 20i8 laying waste the Obama legacy of long term peace making.

The bottom line is still President Trump dreams of a new Iran Deal during his watch in the second and last presidency. But in strategy you need two to tango. Admittedly Iran is not playing ball with Deal Maker Trump!

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail: cosmicgems@gmail.com

Blog:   Business Strategist