Iran Press/ Africa: In 2009, the UN imposed a nationwide arms embargo, travel ban and asset freeze on certain people and entities after accusing Eritrea of 'supporting armed groups' in Somalia, Aljazeera reported.
Eritrea has denied those allegations.
Earlier this year, Eritrea and Ethiopia signed a peace deal after a decades-long dispute.
Following that peace agreement, Eritrea asked the UN to lift its sanctions, pointing to the region's diplomatic shifts.
The dispute started in the early 1990s, when Eritrea gained its independence from Ethiopia, after which a war broke out later that decade over border disputes.
A 2002 UN-backed boundary demarcation was meant to settle the dispute for good, but Ethiopia refused to abide by it.
UNSC's Wednesday decision, made during a meeting of the UN Security Council, follows a rapprochement between Eritrea and neighboring Ethiopia in recent months.
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UN hails Ethiopia-Eritrea rapprochement
Ethiopia, Eritrea leaders sign peace accord
The Security Council welcomed the improved relationship between the two countries but added that Eritrea needs to strive for closer ties with its other neighbor, Djibouti.
Eritrea and Djibouti have been at odds over a border dispute since June 2008 that led to military clashes which killed a dozen Djiboutian troops.
Repeated violence over the disputed territory raised fears the conflict could engulf the entire Horn of Africa region. 210/103
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Ethiopia and Eritrea to renew diplomatic ties
Ethiopia-Eritrea relations boost regional security