Boeing has entered into a potential $16.6 billion contract to produce and supply 80 passenger aircraft to Iran Air.
The sales agreement with Iran Air was reached under the terms of the U.S. government license that Boeing secured in September, Boeing said Sunday.
The contract covers 50 Boeing-built 737 MAX 8, 15 777-300ER and 15 777-9 passenger planes.
Iran Air expects Boeing to deliver the first batch of airplanes in 2018.
Boeing’s 737 MAX 8 and 777X are scheduled to enter service in 2017 and 2020, respectively.
The Wall Street Journal reported Sunday the aircraft sale is subject to approval by Congress and the departments of Treasury and State because the deal involves a state-owned airline.
Robert Wall and Asa Fitch write the Obama administration encouraged the Iran Air-Boeing transaction and other similar deals as part of efforts to solidify a nuclear agreement with Iran.
The report said the airline also seeks to buy 118 planes from Airbus for an estimated cost of $25 billion.