Iran Air confirmed that it has signed a memorandum of understanding with Boeing to purchase an unspecified number of 737 and 777 aircraft worth an estimated $25bn. Iranian officials earlier indicated that the country planned to acquire 100 aircraft and that almost all of the country’s existing fleet of 250 aircraft would have to be replaced.

In a statement to Associated Press, Boeing confirmed the signature of the MoU and said that it would “continue to follow the lead of the U.S. government with regards to working with Iran's airlines”, adding that “any and all contracts with Iran's airlines will be contingent upon U.S. government approval.”

While the U.S. government has agreed to lift the nuclear sanctions against Iran, it continues to impose other sanctions over Iran's human rights policies and support for terrorism. These sanctions bar American citizens and companies from most forms of investment or trade with the country. For example, it is still not possible to process payments linked to Iran through the U.S. financial system

The Boeing Mou follows an agreement with Airbus announced in January, covering the acquisition by Iran Air of 118 aircraft — 45 A320s, 45 A330s, 16 A350s and 12 A380s — along with Airbus support in pilot and maintenance training, customer support and services.

Airbus also announced a separate agreement covering development of the country’s air navigation services with assistance in airport and aircraft operations, harmonisation of its air regulations, training on the technical and academic levels, guidance in maintenance and repair operations, as well as industrial cooperation.

In February, Iran Air signed an agreement covering firm orders for 20 ATR 72-600 turboprops plus 20 options — a deal valued at €1bn.