The United States has waived sanctions on Iran for a period of 60 days starting Monday, following the first round of talks under a nascent peace agreement. US President Donald Trump stated that he will "do what I have to do" if Iran does not adhere to its commitments under the deal.
US Vice President JD Vance Optimistic About Talks
US Vice President JD Vance said that talks with Iranian officials in Switzerland had laid a good foundation for a final peace deal. However, Iran denied that discussions on its nuclear programme had begun or that it had agreed to invite International Atomic Energy Agency (IAEA) inspectors back to the country. Foreign Ministry spokesperson Esmail Baghaei stated on Tuesday that Iranian officials had not met with IAEA chief Rafael Grossi in Switzerland and had no plans for the UN nuclear watchdog to inspect Iran's damaged nuclear facilities.
Interim Deal and Roadmap to Permanent Agreement
The two sides, building on an interim deal signed last week after more than three months of war, agreed on a roadmap towards a permanent agreement within 60 days. The talks took place in the Swiss mountain resort of Buergenstock, with mediators Pakistan and Qatar confirming the agreement. They agreed on a mechanism to end fighting between US ally Israel and Iran-backed Hezbollah in Lebanon, and opened a communications line to ensure safe passage for commercial ships through the Strait of Hormuz, a vital waterway for global oil supplies that Tehran had blockaded during the war.
US Treasury Announces Sanctions Waiver
In the first of several steps envisaged under the agreement to provide economic relief to Iran, the US Treasury announced a waiver until August 21 on sanctions, allowing Tehran to sell oil and related products and receive payment for them. Ali Bahreini, Iran's ambassador to the United Nations in Geneva, said "good progress" had been made in the talks and that two working groups would be established in the coming days to focus on the removal of sanctions and Iran's nuclear activities. He told reporters that five parts of the initial deal need to be fully implemented before negotiations begin on the nuclear dossier and any role for the IAEA.
Lebanon and Regional Ceasefire
Bahreini also stated that Lebanon was an "unquestionable" part of the interim accord between the US and Iran, and that it includes the withdrawal of Israeli troops from Lebanon. Officials reported a sustained lull in fighting in Lebanon under the agreement aimed at ending hostilities across the region, even as Israel said it would maintain a security zone in southern Lebanon and continue to act to "neutralise" threats against Israeli soldiers and citizens. Israel and Lebanon were due to start a new round of talks in Washington on Tuesday.
Strait of Hormuz and Oil Prices
Tanker traffic through the Strait of Hormuz started to pick up on Monday, with the foreign minister of Oman affirming his country's commitment to international law and toll-free safe passage during negotiations with Iran over administering the strait. US-Israeli attacks on Iran and Israeli strikes in Lebanon have killed thousands of people and displaced millions. The war with Iran has also shaken financial markets worldwide and pushed up global oil prices, which have fallen since the interim deal was reached. Crude prices fell further on Tuesday after settling 3% lower on Monday.
Vance Delivers Upbeat Assessment
Vance said on Monday that Iran had agreed to allow in nuclear inspectors and to establish mechanisms to handle its frozen assets and manage ceasefires at the talks, which he described as "a very good foundation for a successful final deal." The war with Iran has become a political liability at home for Trump and his fellow Republicans in Congress, with public opinion polls showing Americans deeply frustrated by a rise in gas prices since the war began and midterm elections looming in November. Trump also faces pressure from Republicans who say Iran's nuclear programme must be completely shut down.
Trump's Warning and Iranian Response
Trump said on Truth Social on Monday that Iran will agree to have weapons inspections to ensure "nuclear honesty." "If Iran doesn't live up to their agreement, or if they're not behaving, I will do what I have to do," Trump later told reporters. Iranian President Masoud Pezeshkian said on X on Tuesday that the effectiveness of the talks depended on full commitment to the obligations that have been agreed and their precise implementation. He cautioned that "statements outside the agreed text do not help advance negotiations."
Nuclear Inspections and Frozen Assets
Iran has limited inspections by the IAEA since the US and Israel launched a first round of airstrikes last year, and suspended them entirely when war broke out with renewed attacks on Iran in February. It says its nuclear programme is peaceful. Iranian Foreign Minister Abbas Araghchi said on social media that Tehran had secured waivers for oil and petrochemical exports, the release of some of its frozen assets abroad and the launch of a reconstruction and development plan for Iran. Vance said White House envoy Jared Kushner, Trump's son-in-law, had come up with a process whereby the US and Qatar would have control over Iranian funds when they are unfrozen, and the money could be spent on US corn, soy and wheat. "So, the money that we lift is going to go to our farmers," Trump told reporters. Iran's Central Bank Governor Abdolnaser Hemmati said there was no such obligation, and that at least some of the remaining frozen funds could be used to buy other non-sanctioned goods, Iran's Tasnim news agency reported.
