The United States is set to remove sanctions against Eritrea, according to an internal US government document seen by Reuters, a decision analysts linked to the African state's strategic location on the Red Sea shipping route.

The US move is aimed at improving ties with Eritrea, which has a long Red Sea coastline opposite Saudi Arabia.

The war in Iran and closure of the Strait of Hormuz, close to Saudi Arabia's eastern coast, have brought into focus the importance of having control over the Red Sea, a key conduit for trade between the Mediterranean and Asia.

In 2021, the US administration under President Joe Biden imposed sanctions against Eritrea's ruling party and military as well as senior Eritrean officials, citing involvement in war in the neighbouring Ethiopia. According to the US, Eritrean forces backed Ethiopian troops fighting regional authorities in the northern Tigray region.

Sweeping sanctions

The internal government document, a note sent by the US State Department to several countries, said the US would rescind "on or around May 4" an executive order signed by Biden imposing the sanctions. Ties had been on ice for decades even before the sanctions were imposed.

It was not clear when the lifting of the sanctions would be announced. Neither the US State Department nor the Treasury immediately responded to requests for comment.

The 2021 sanctions were sweeping, targeting Eritrea's military, its ruling political party, the People’s Front for Democracy and Justice (PFDJ) and the head of the Eritrean national security office, among others.

However, the US-Iran war has severely disrupted oil supplies from and shipping through the region, and positions Eritrea as a significant player to deal with.