It didn't take long after Trump signed the EO regarding sanctions with Iran, that he plainly issued what's at stake. Trump let countries know that if they choose to do business with Iran, the US will not do business with them.
“Anyone doing business with Iran will NOT be doing business with the United States. I am asking for WORLD PEACE, nothing less!”
The sanctions put back in place by Trump will target Iran's gold and precious metals industries and the automotive industry.
The EU and the UK have decided to continue trading with Iran, and the EU warned industries under their flag that if they side with the US in these sanctions, the EU will sanction those companies.
According to Forbes, at least 10 major companies (among others) have already decided to leave Iran and are seeking new suppy chains.
1. Total – The French oil company, Total SA, announced it would pull out of the billion-dollar deal it made with both Iran and the Chinese company CNCP if it could not obtain a waiver from the United States. The partnership was to develop the South Pars 11 natural gas field in Iran. Total was the only major international oil company to sign with Iran since the old sanctions ended in January of 2016. It had a 30% stake in the gas field, which Iran now intends to give to CNPC.
2. Maersk – The shipping company A.P. Moller-Maersk announced it would not longer ship Iranian oil due to the U.S. sanctions. In a statement by the CEO, the company was clear that it prioritized its business with the U.S. over business in Iran. He was not clear on exactly when Maersk would cease all operations involving Iranian oil.
3. Peugeot – This car manufacturer, owned by PSA Group, signaled it plans to pull out of Iran unless a sanctions waiver is obtained. It is putting plans into place to wind down activities in Iran by August 6, 2018. PSA sold 445,000 cars in Iran last year and does not currently market in the U.S. In addition to selling cars in Iran, the company had signed agreements with Iran Khodro Industrial Group to manufacture Peugeot cars in Iran and with SAIPA to build Citroën vehicles in Iran.
4. GE – General Electric GE +0.46% and its subsidiary, Baker Hughes BHI +0%, had made combined revenue of almost $25 million from contracts with Iran since 2016. These included deals with MAPNA, an Iranian electricity conglomerate, and contracts to provide pipelines, valves and other oil and gas infrastructure products to Iranian companies. GE and Baker Hughes will cease operations in Iran in accordance with U.S. law. The trade licenses that the company had been operating under are expected to be revoked in November.
5. Honeywell – Honeywell International HON +0.9% Inc., a technology company, had, according to the Wall Street Journal, over $110 million in revenue from Iran since 2016. It recently declared it would be pulling out of the country. Recently, a Honeywell subsidiary had obtained a contract to upgrade the monitoring and control technology at Iran’s Tabriz Petrochemical Company.
6. Boeing BA +1.21% – Boeing, which had a high profile $20 billion contract for airplanes with Iran Air and Iran Aseman Airlines, recently announced it will not be delivering the planes to Iran in light of the new sanctions. The company could have applied for a waiver from the U.S. government, but it announced on June 6 that it would cancel the contract instead.
7. Lukoil – The second largest Russian oil company was dubbed one of “the favorites” to develop oil fields in Iran. But the company decided at the end of May that it would no longer pursue any joint ventures with Iranian oil companies due to the impending U.S. sanctions.
8. Reliance – Reliance Industries Ltd., an Indian company that owns the world’s largest oil-refining complex, announced on May 30 that it would no longer accept crude oil imports from Iran. Because crude oil imports are contracted months in advance, Reliance will cease importing Iranian oil in October or November.
9. Dover DOV +0.52% – Dover Corp., which manufactures pumps and other products used in the oil industry, first signed contracts with Iran in 2017. It now plans to end all business with Iran in accordance with sanctions.
10. Siemens – Siemens Corporation, which manufactures a variety of healthcare, industry, energy and automobile products, announced it would no longer take new orders from Iran. It will wind down its business interests there.
Even though the EU has threatened businesses with punishment, being able to trade with the US seems to be more important to many companies doing business in Iran. All types of businesses across the spectrum are now announcing plans to cease doing business with Iran or to leave Iran because of the US sanctions.