Nov 25, 2013 12:26 PM EST
Iran Nuclear Deal Could Boost Business for French Automakers

The six-month deal to slow nuclear activities struck with Iran on Sunday should benefit two French carmakers and companies that transport Iranian oil, Bloomberg reported.

Iran and six world powers including the United States and its European partners agreed on Sunday to the interim pact, which stopped Iran's "most sensitive" nuclear work, according to Reuters.

The accord should boost PSA Peugeot Citroën and Renault SA as they look to possibly resuming business with Iranian partners.

The deal reduces restrictions on cars, petrochemicals, aviation parts, gold and insurance for oil cargoes, Bloomberg said. The pact will also let the Persian Gulf state keep exporting oil at current levels instead of reducing.

While primary restrictions on banking and oil have remained, the accord could be the first shift in the pattern of tightening sanctions in Iran. If the change continues, the country could eventually return to the worldwide economy.

"Any indication that we could resume doing business with our partners in Iran goes in the right direction," said Peugeot spokesman Jean-Baptiste Thomas. "We'll of course welcome the re-opening of the Iranian market."

On the other hand, American companies won't benefit from the deal since besides food and medicine; almost all U.S. trade with Iran has been banned for decades.

Iran has lost billions in revenue after the U.S. and the European Union began imposing sanctions on energy, ports, insurance, shipping, banking and other transactions in 2010. The sanctions have cost Iran some $120 billion, according to U.S. Treasury estimates.

The recent pact may be an opening for Iran to trade with gold traders in Turkey, oil refiners in India and shipping insurers in London.

Fewer auto restrictions mean that around $500 million in lost trade should be restored to Iran in the next six months, according to Obama administration officials who asked not to be named.

"This is good news for us, as Iran is an important market for Renault," Florence de Goldfiem, Renault director of communications, told Bloomberg in a telephone interview Sunday. "We're waiting to see what the conditions of redeployment of our activities in the country may be."

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