U.S. aerospace giant Boeing has signed a tentative deal to sell passenger jets to Iran, in what would be the biggest business deal between the U.S. and Iran in 37 years.
The transaction would be worth as much as $25 billion, with Iran buying at least 100 commercial jets for its state-owned airline.
With most economic sanctions against Iran lifted after it signed the recent nuclear deal, Iran Air is ready to expand its fleet. It already has made a pending deal with the European consortium Airbus for passenger planes.
Boeing says the Obama administration approved its initial deal with Iran after determining that Tehran is meeting its obligations under the nuclear agreement.
"Boeing will continue to follow the lead of the U.S. government with regards to working with Iran's airlines, and any and all contracts with Iran's airlines will be contingent upon U.S. government approval," a company statement said Tuesday.