Iran Air and Boeing have confirmed an agreement for 80 single-aisle and wide-bodied aircraft, valued at $16.6 billion at list prices.

The deal follows a memorandum of agreement signed by the two companies back in June, with the contract being reached “within the terms of the US Government license issued to Boeing in September”.

The order is for 50 of Boeing’s next-generation B737 Max 8 aircraft, as well as 15 B777-300ERs and 15 B777-9 aircraft. The first aircraft delivery under the agreement is scheduled for 2018.

In a statement Boeing said it had “Boeing coordinated closely with the US Government throughout the process leading up to the sale and continues to follow all license requirements as it moves forward to implement the sales agreement”.

The deal still faces challenges though, with US president-elect Donald Trump having criticised the 2015 Iran nuclear accord, which allowed sanctions to be lifted.

Earlier this year Iran Air signed an agreement with Airbus to purchase 118 single and wide-bodied aircraft.,