A week before the Iranian election, the U.S. signed a waiver extending sanction relief. That was followed by a statement from French energy giant Total, stating it will resume investments in Iran.
The United Nations Conference on Trade and Development has put Iran among successful countries in terms of attracting foreign investments in 2016. In its 2017 World Investment Report, Iran attracted $3.372 billion worth of foreign investments, which is a 63 percent increase from the previous year.
It is plausible that the prospect of new sanctions could scare off foreign investors, as President Donald Trump’s administration has said it is “putting Iran on notice.”
Nonetheless, Cappello said, the U.S. cannot legally alter the international agreement with Tehran on its own and “the continued aggressive rhetoric clearly does not help sentiment and makes perceived risks higher than what they actually are.”
And when it comes to Iran developing a fruitful economic relationship with investors, it will depend on continued reforms, he said.
“Our hope is that … deals such as the one Total signed will set a precedent that doing business with Iran is okay and encourage the global business community to re-engage the country.”