Several Firms Could Benefit from Easing Restrictions with Iran
In a historic move, the U.S. and its European Union partners reached an accord to ease restrictions of cars, petrochemicals, aviation parts, gold and insurance for oil cargoes with Iran. In exchange, Iran will terminate some of its work on uranium enrichment for six months.
Prior to the agreement Iran was under scrutiny by both the U.S. and EU, who imposed sanctions on Iran that have cost the nation $120 billion in lost revenue. The American sanctions also penalize other nations that trade with Iran, including its allies.
According to Bloomberg, officials within the U.S. government indicated that an easing of auto sanctions will restore $500 million in lost trade to Iran over six months. “This is good news for us, as Iran is an important market for Renault,” Florence de Goldfiem, director of communications at Renault, told Bloomberg.
Tanker insurance companies are also set to benefit, as ship owners and companies that cover risks such as spills will also see increased business. European giants Lloyd's Banking Group, Munich Re and Swiss Re will benefit the most.
Iran will remain under heavy scrutiny as many restrictions will remain in place. Iran will not gain access to the global financial system and an oil embargo will remain in place.
Over the course of the next six months, the United States Secretary of State John Kerry and his peers within the U.K., France, Germany, China and Russian governments could draft a final far-reaching settlement.
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