US Oil and Finance Sectors Will Benefit from Iranian Sanctions Relief

Major US law firm Dorsey and Whitney says that foreign firms will get most of the first benefits of the Iranian sanctions relief. In the US, the oil and finance sectors will be the first to profit.

Lawrence Ward, an international business lawyer with Dorsey and Whitney, who provides legal advice related to trade regulations set down by the US Commerce, State, and Treasury Departments, said:

The two sectors that may feel a little relief on the US side, at least initially, are in some ways US financial institutions. The US oil and gas sector…may also feel some impact of the changes.

The P5+1 nations, which include Russia, US, France, UK, China, and Germany, and Iran came to an agreement on July 14 to relax global sanctions against Iran if it modifies its nuclear program.

Ward said that the floodgate of opportunities will not immediately open to US firms once economic restrictions on Iran are withdrawn because a majority of the sanctions are designed to eliminate obstacles to market access for foreign firms. He said:

At least initially, the sanctions relief that is going to be felt is not going to be felt by your typical US company.

US will benefit in the long run if Iran’s nuclear deal gets the approval of the Congress and if the terms of this deal are properly implemented. He said:

US businesses should feel the doors are going to open much wider at that point. Assuming Iran agrees to all of their requirements for the next 8 years, if everything goes smoothly … which is a big question mark.

Ward is worried about the fact that the Congress has had a major role to play in finalizing the nuclear agreement with Iran and political upheavals in the country will have an adverse effect on sanctions relief. He said:

There is a lot that can happen in the next eight years to derail this (the nuclear agreement) … so it remains to be seen where it is going to go.

Senator Marco Rubio declared on Thursday that the country’s sanctions relief will last only as long as Barack Obama’s tenure as US president. This gives the Congress not more than 60 days to make a comprehensive review of the deal, in which time the president cannot suspend or waive active sanctions against Tehran. If the deal gets rejected, the president can only veto the bill, after which the two-thrds majority can override it.