The temporary sanctions relief marks a significant easing of pressure on Tehran’s energy sector and could pave the way for increased Iranian oil exports, potentially easing concerns over global supply disruptions and energy prices.
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The sanctions waiver emerged 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 now working toward a permanent agreement to end the war that the United States and Israel launched in late February, with the temporary sanctions relief seen as a confidence-building measure to sustain momentum in the negotiations.
Talks gain traction despite Trump interruptions
The sanctions waiver came as Vice President JD Vance said marathon talks with senior Iranian officials in Switzerland had laid the groundwork for a broader settlement to end the conflict that erupted in late February.
“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, according to AP, after initial discussions with Iranian parliamentary speaker Mohammad Bagher Qalibaf.
The mediation effort, dubbed the “Lake Lucerne Summit”, began on Sunday and stretched into the early hours of Monday. Although negotiations were marked by tense moments and brief pauses, mediators said the two sides made progress on several fronts and agreed to continue technical discussions this week.
US President Donald Trump was not present in Switzerland, but his remarks from Washington repeatedly reverberated through the negotiations. Iranian state media reported that talks were briefly halted after the publication of what it described as an “insulting message” by Trump. Negotiations later resumed.
Vance, however, dismissed suggestions that Trump’s comments had derailed the process. According to AP, he said Iranian officials had threatened to walk away from the talks, but negotiations continued “well past one in the morning”, indicating that both sides remained committed to finding a path forward.
Also read: Oil export curbs waived, blockade lifted: Iran says ‘major progress’ in US talks
Nuclear talks, Hormuz security on agenda
The interim agreement signed last week by the leaders of the United States and Iran has opened a 60-day diplomatic window to negotiate a permanent settlement, with discussions focusing on the future of Tehran’s nuclear programme and broader regional security concerns.
Vance said negotiators had made progress on creating mechanisms to ensure that the Strait of Hormuz — a vital route for global energy shipments — remains open and that a ceasefire between Israel and Iran-backed Hezbollah militants in southern Lebanon holds. The vice president stressed that technical talks would now be critical in translating broad political understandings into concrete arrangements.
According to AP, Vance also floated the possibility of unfreezing Iranian assets to allow Tehran to purchase American agricultural products, including soy, corn and wheat. The proposal, reportedly developed with the involvement of Qatar, would channel Iranian funds toward imports intended “for the benefit of the Iranian people”. Iran, which has long demanded access to billions of dollars in frozen assets, has not publicly commented on the idea.
Iranian Foreign Minister Abbas Araghchi separately described the discussions as having achieved “major progress” toward ending the fighting in Lebanon and said the success of efforts to halt hostilities between Israel and Hezbollah would be the first real test of the negotiations. Investors appeared cautiously optimistic about the diplomatic momentum, with oil prices edging lower on expectations that progress in the talks could reduce risks to global energy supplies.