The US Treasury on Monday, June 22, issued a 60-day licence waiving sanctions on Iranian oil as part of an interim agreement aimed at ending the Iran war.
The licence authorises the production, delivery and sale of Iranian oil through August 21. It emerged on Monday as US Vice President JD Vance said lengthy talks with senior Iranian officials in Switzerland had created a “good foundation for a successful final deal”.
Negotiators are seeking a permanent end to the war that the US and Israel began in late February.
Vance sees progress towards final agreement
“The final deal is the house,” Vance told reporters after initial talks with Iran’s parliamentary speaker, Mohammad Bagher Qalibaf. “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.”
Iran noted “major progress” towards ending the fighting in Lebanon and described that as the first real test of the negotiations.
The mediation effort in Switzerland, which started on Sunday and stretched into early Monday, had rocky moments. But the talks also led to some agreements, mediators said, as technical negotiations continue this week.
Trump looms large over talks
President Donald Trump did not attend what was dubbed the “Lake Lucerne Summit”, but his presence loomed large over the negotiations.
Iranian state media said talks had paused after the publication of what it called an insulting message by Trump. Negotiations later resumed.
Vance rejected suggestions that Trump’s comments had complicated the talks.
“No, they didn’t throw a wrench in the system,” Vance said. “Yes, they did threaten to walk out, or at least there were social media threats that they would walk out. But we were negotiating well past one in the morning yesterday, so they didn’t walk out.”
Proposal to unfreeze Iranian assets
Vance suggested the US could agree to unfreeze Iranian assets for purchases of American soy, corn and wheat. He said Jared Kushner, Trump’s son-in-law and one of the lead US negotiators, developed the proposal with Qatari officials.
According to Vance, Qatar would oversee the process, while Iranian funds made available through sanctions relief would be used to buy American products for the benefit of the Iranian people.
Iran, which has long pressed for access to billions of dollars in frozen assets, has not publicly commented on the proposal.
Technical talks continue
In a joint statement, mediators Pakistan and Qatar welcomed what they called “encouraging progress”.
The interim agreement signed last week established a 60-day negotiating period covering issues including the future of Iran’s nuclear programme, amid concerns that Tehran could use it for military purposes. Iran denies the allegation.
Vance said progress had been made on several fronts, including mechanisms to keep the Strait of Hormuz open and efforts to maintain a ceasefire between Israel and Hezbollah in southern Lebanon.
“We wanted to set up a structure for that so that you could have proper political oversight, but obviously, as much as this place is very beautiful, I can’t stay here for the next 60 days,” Vance told reporters before returning to Washington.
US envoys Kushner and Steve Witkoff are expected to handle many of the technical negotiations.
Meanwhile, investors absorbed the ups and downs of Trump’s strategy in Iran. Oil prices edged lower on optimism surrounding progress in the negotiations.
Vance criticises Iranian rhetoric
Trump over the weekend expressed frustration over Iranian comments regarding the Strait of Hormuz, which Iran’s military said it had closed on Saturday in response to continued fighting in Lebanon. US Central Command disputed that claim.
Ahead of the talks, Iranian President Masoud Pezeshkian vowed to “never back down from the right to enrich uranium”, according to state media.
Trump later warned Iran on social media to restrain its allies in Lebanon and threatened further action if attacks continued.
Vance said Iranian officials should not have been surprised by Trump’s response.
“What we told the Iranians yesterday is when you guys engage in what us millennials might call trash talk, you can’t expect the President of the United States not to respond and not to correct the record,” he said.
Lebanon ceasefire seen as first test
Iranian Foreign Minister Abbas Araghchi said on X that mediators had delivered “major progress” towards ending the Lebanon conflict. However, he said the first real test would be whether the mechanism succeeds in halting hostilities between Israel and Hezbollah.
Iran has repeatedly insisted that the fighting in Lebanon be addressed first. Neither Israel nor Hezbollah is a signatory to the US-Iran agreement.
A renewed ceasefire in Lebanon appeared to be holding on Monday, with Israel announcing the lifting of movement restrictions near the border. No Israeli strikes were reported overnight, and Hezbollah has not claimed attacks since Saturday.
The lull in fighting is the longest since the latest Israel-Hezbollah conflict began on March 2.
“This region has been a basket case for a very long time,” Vance said.
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