Big Win For Tehran? US Suspends Iran Oil Sanctions For 60 Days

The United States on Monday issued a 60-day licence waiving sanctions on Iranian oil through 21 August 2026. The measure authorises the production, delivery and sale of Iranian crude as part of an interim agreement aimed at ending the war that the US and Israel launched on February 28.

"In line with the ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency (IAEA) inspectors into their country," said US Treasury Secretary Scott Bessent.

"As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil," he added.

This move could pave the way for increased Iranian oil exports, potentially easing concerns over global supply disruptions and energy prices. US Vice President JD Vance said the talks in Switzerland had created a "good foundation for a successful final deal," according to AP.

The sanctions waiver came as Vance said marathon talks with senior Iranian officials in Switzerland had laid the groundwork for a broader settlement to end the conflict. "The final deal is the house. We set the foundation. We haven't built the house, but we've laid a successful foundation to get to a good place for the American people," Vance said after initial discussions with Iranian parliamentary speaker Mohammad Bagher Qalibaf.

Overcoming Summit Hurdles

The mediation effort, dubbed the "Lake Lucerne Summit", began on Sunday and stretched into the early hours of Monday after initial discussions with Qalibaf. Although negotiations were marked by tense moments and brief pauses, mediators said the two sides progressed on several fronts and agreed to continue technical discussions this week.

Donald Trump was not in Switzerland, but his remarks from Washington repeatedly reverberated through the negotiations. Iranian state media said talks were briefly halted after what it described as an "insulting message" by Trump.

Vance, however, dismissed suggestions that Trump's comments had derailed the process, the news agency wrote.

Nuclear Breakthrough

Addressing reporters following the negotiations, Vance said that Iran has agreed to allow International Atomic Energy Agency inspectors back into the country to restore oversight of its nuclear programme.

"The Iranians have agreed to invite IAEA inspectors back into their country," Vance said, adding that this "is a major milestone for the American people and the first step in permanently denuclearising or permanently ending a nuclear weapons programme in Iran."