The United States is preparing to reopen ties with long-isolated Eritrea by lifting sanctions, Reuters reported, citing internal US government documents.

It marks the country’s rising strategic importance along the Red Sea shipping route — its coastline faces Saudi Arabia — which is one of the world’s busiest transport lanes connecting Asia to Europe via the Suez Canal. With oil flows through the Strait of Hormuz disrupted by the fallout from the US-Israel conflict with Iran, Washington’s focus on alternative routes has intensified.

The move reflects a broader effort to reengage the Horn of Africa country and would rescind a 2021 executive order imposed under former US President Joe Biden. Eritrea remains highly repressive, say rights groups, and was sanctioned over its role in Ethiopia’s Tigray war between 2020 to 2022. Semafor reported last month that the latest US-Eritrea normalization talks, brokered by Egypt, were already underway, according to people familiar with the discussions.