The fallout from the United States’ decision to pull out of the Iran nuclear deal is being felt more than one week later.
On Wednesday, French oil and gas company Total announced that it was planning to cease operations of a $1 billion dollar gas project located in Iran because of the possibility of new US sanctions leveled against the country. Executives at Total said that it will wind down its operations in Iran by November if the United States makes the decision to reinstate the sanctions that were waived in the face of the past deal. The rules of the 2015 pact with Iran and many other countries were set to deter Iran from its nuclear program.
In 2017, the energy giant was given a contract with an initial investment of $1 billion to develop phase 11 of the South Pars gas field in Iran. Because sanctions had been lifted against Iran in 2015, Total and many other global companies have been exploring business opportunities in that area. These ventures are now facing much uncertainty due to President Donald Trump’s decision to pull out of the deal. In addition to Total, Danish tank manufacturer Maersk stated that although it would continue to fulfill current contracts in Iran, it would not be pursuing new business in the country. German insurer Allianz also decided to cease operations in Iran while waiting to see how the US withdraw from the deal would affect business ventures.