BUERGENSTOCK, Switzerland/WASHINGTON, June 23 - The U.S. government has waived certain sanctions on Iran for 60 days effective from Monday, in the wake of initial talks aimed at expanding a recently signed interim agreement. The move was announced as participants described progress toward negotiating a permanent settlement within a two-month window, while some Iranian officials insisted nuclear matters were not yet on the table.
U.S. President Donald Trump said he would take action if Iran fails to honor its commitments. "If Iran doesn’t live up to their agreement, or if they’re not behaving, I will do what I have to do," he told reporters. The president also posted on Truth Social that Iran will agree to weapons inspections intended to ensure "nuclear honesty."
Vice President JD Vance, who attended the sessions in Switzerland, characterized the talks as laying "a very good foundation for a successful final deal." Vance said negotiators had reached understandings on allowing nuclear inspectors into Iran and creating mechanisms to manage frozen Iranian assets abroad and oversee ceasefires.
Representatives of the parties, working from an interim memorandum of understanding signed last week, agreed at the Buergenstock resort - described in official accounts as a Qatari-owned Swiss mountain venue - to a roadmap that aims for a permanent agreement within 60 days. Mediators from Pakistan and Qatar conveyed that the parties had also reached understandings on specific mechanisms to reduce hostilities across the region.
Among those steps was a mechanism intended to halt fighting in Lebanon between Israel and the Iran-aligned Hezbollah. Officials reported a sustained lull in fighting in Lebanon under the new arrangement, even as Israel said it would maintain a security zone in southern Lebanon and continue to act to "neutralise" threats it perceives to soldiers and citizens.
Another provision opened a communications line to promote safe passage for commercial shipping through the Strait of Hormuz, a strategic waterway where tensions have affected tanker traffic. Tanker movements through the strait began to pick up on Monday. The foreign minister of Oman reiterated his country’s commitment to international law and to toll-free safe passage while negotiations with Iran continued over how the waterway would be administered.
As part of the initial economic measures under the interim agreement, the U.S. Treasury announced a sanctions waiver lasting until August 21, allowing Tehran to sell oil and related products and to receive payment for those sales. Iranian officials described these steps as important economic relief, with Iran’s Foreign Minister Abbas Araqchi posting on social media that Tehran had secured waivers for oil and petrochemical exports, the release of some frozen assets, and the start of a reconstruction and development plan.
However, Iran’s Foreign Ministry spokesperson Esmaeil Baghaei told the official IRNA news agency that the country had not yet discussed nuclear issues or made new commitments. Separately, Iran’s Central Bank Governor Abdolnaser Hemmati said that there was no obligation tying the use of any released funds to specific purchases, and indicated that at least some of the remaining frozen funds could be used to buy other non-sanctioned goods, according to Iran’s Tasnim news agency.
Vice President Vance also described a proposal from White House envoy Jared Kushner for managing the release of frozen Iranian funds. Under the process Vance outlined, the United States and Qatar would exercise control over Iranian funds when those assets were unfrozen, and the money could be used to buy U.S. agricultural commodities such as corn, soy and wheat. President Trump told reporters, "So, the money that we lift is going to go to our farmers."
On the military front, officials noted that U.S.-Israeli strikes on Iran and Israeli attacks in Lebanon have resulted in thousands of deaths and the displacement of millions of people. The conflict has also had economic consequences, disrupting markets and contributing to higher global oil prices. In market activity following the announcement of the talks, crude oil prices extended losses on Tuesday after settling 3% lower on Monday.
Israel was not a signatory to the interim peace memorandum, but the country agreed on Friday to a new ceasefire in Lebanon. Although intense fighting continued for a further day, Lebanese officials said hostilities had abated since Saturday night. Israel and Lebanon were scheduled to begin another round of direct talks in Washington on Tuesday, with Beirut intent on continuing negotiations even as Iran’s decision to include Lebanon in its talks with the United States shaped the diplomatic environment.
Negotiators said technical discussions were to continue for the remainder of the week. The parties set out a timeline and initial steps to test compliance and build trust, while maintaining differing public accounts on precisely which issues had been negotiated. The developments underscore the fragility of the current accord and the focus on concrete mechanisms - from inspections to funds management - intended to verify and sustain any longer-term agreement.
Summary
The U.S. granted a 60-day sanctions waiver to Iran following preliminary talks at Buergenstock, enabling oil sales and payments through August 21. Delegates agreed to a 60-day roadmap toward a permanent agreement and measures to reduce regional hostilities, including mechanisms related to Lebanon and safe passage through the Strait of Hormuz. U.S. officials described progress on inspections and funds management, while Iranian officials said nuclear matters had not been discussed and disputed constraints on use of frozen funds. Technical talks were set to continue through the week.
Key points
- The U.S. issued a 60-day sanctions waiver allowing Iran to sell oil and receive payment until August 21 - impacting energy markets and commodity traders.
- Negotiators agreed to a 60-day roadmap toward a permanent agreement and to mechanisms aimed at ending fighting in Lebanon and ensuring safe shipping through the Strait of Hormuz - relevant to regional security and shipping industries.
- Officials reported progress on arrangements for inspections and management of frozen Iranian assets, though Iranian officials denied that nuclear issues had been discussed - significant for political and financial sectors monitoring compliance.
Risks and uncertainties
- Compliance risk - If Iran does not adhere to the interim steps, U.S. officials have signalled the potential for renewed action, creating uncertainty for energy and defense markets.
- Verification uncertainty - Disagreements over whether nuclear issues were discussed point to possible gaps in verification that could affect diplomatic momentum and market confidence.
- Funds management dispute - Differing accounts on restrictions over the use of unfrozen assets could complicate the implementation of economic relief and trade flows, with implications for agricultural exporters and financial intermediaries.