American Companies Prepare to Exit Iranian Market Due to US Sanctions - Reports

US President Donald Trump decided last month to withdraw Washington from the Joint Comprehensive Plan of Action (JCPOA), more commonly known as the Iran deal, drawing criticism from Tehran and other members of the agreement, in addition to the wider international community.

Over a dozen US corporations are preparing to exit Iran as Washington is set to reimpose sanctions against, the Wall Street Journal (WSJ) reported.

Companies which are set to entirely cease their economic activity in Iran include chemical producer Albemarle, engineering and aerospace conglomerate Honeywell, and Eaton Corporation, a power management and energy giant.

READ MORE: US Treasury: Allies Must Crack Down on Funding of Iran's Malign Activities

The aforementioned companies entered and operated in the Iranian market via foreign subsidiaries, as per the US Treasury’s demand.

The JCPOA was agreed upon in late 2015 after extensive negotiations between Iran and the P5+1 group, and came into effect in 2016.

In exchange for the lifting of economic sanctions, Tehran agreed to restrict its nuclear program, especially its uranium enrichment activity, and has provided international monitors with access to its nuclear facilities to ensure its compliance with the terms of the deal.

In search of expansion opportunities and profits, many western businesses, including Airbus and Boeing, swiftly inked deals with Iran after the sanctions were lifted.

READ MORE: France, Germany, UK Demand US to Refuse From Sanctioning Their Companies in Iran

Although the European Union (EU) has said it is keen to maintain the deal, even without Washington, some European businesses have been alarmed by the threat of secondary sanctions to their projects and business ventures in Iran.

Top diplomats from the UK, France and Germany have urged the US to exempt European companies from these sanctions, but the Trump administration is yet to make any guarantees.