Iran Celebrates Auto Deal with Renault

Despite new sanctions imposed by President Trump, Iran and the French car company Renault have agreed a $780 million deal to produce as many as 15,000 cars a year. Since a drop in the cost of oil per barrel and international sanctions, Iran’s economic growth has declined and youth unemployment has sky-rocketed to 40%.

Impact of Sanctions on Iran
Impact of U.S. sanctions on Iran’s foreign investment compared to developing countries and Africa/Middle East. Source: U.S. Treasury

However, recently re-elected president, Hassan Rouhani, has promised to revitalize the economy by welcoming foreign investors such as American airline company Boeing. The deal between Renault and Iran indicates the likely possibility that the Trump administration will allow the nuclear deal to survive.

Throughout the campaign trail, Trump told his supporters how the nuclear deal struck by the Obama administration and other Western nations with Iran was one of the worst deals made in history. Many countries in Europe are already critical of the Trump administration, so an American decision to withdraw from the nuclear deal would be cataclysmic for American and European relationships.

Watch Trump talk about his thoughts on the Iran Nuclear Deal here.

Source: NYT

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