US waives Iran oil sanctions citing progress in talks

By stepping in as mediator in the Iran war, Pakistan has managed to elevate its status from a regional player to a global diplomatic stakeholder — with a little help from China and its friends in the Gulf.

Read more about Pakistan's diplomatic efforts.

Oman's Foreign Minister Badr Albusaidi, in a post on X, said he held "constructive discussions" in Muscat with Iran's Speaker of Parliament Mohammad Bagher Ghalibaf and Iranian Foreign Minister Abbas Araghchi. 

Albusaidi said the talks were centered on the US-Iran Memorandum of Understanding, "especially the Strait of Hormuz paragraph."

"We affirmed commitment to international law and toll-free safe passage," Albusaidi added.

US President Donald Trump spoke about the Memorandum of Understanding (MoU) in comments to journalists while he was signing executive orders at the White House.  

"If Iran doesn't live up to their agreement, I will do what I have to do," Trump said. 

Trump touted the US operation in Iran: "Their country is a mess." He was responding to reporting by The New York Times which found that the four months of war and ensuing MoU did not terminate the main threats from Iran. 

Trump was also asked about Israeli Prime Minister Benjamin Netanyahu's comments that Israeli forces will stay in southern Lebanon.

"I'm not going to tell you what I'm going to do, but it gets solved. I'm a problem solver. I get problems solved real fast, including with Bibi," Trump said, referring to a Netanyahu's nickname.       

While both sides claim "encouraging progress," experts say there's a long way to go to turn the shaky diplomatic framework into a durable agreement.

Read more about the peace process between the US and Iranian officials.

Israeli Prime Minister Benjamin Netanyahu said the Israeli military will keep its "freedom of action" against Hezbollah in southern Lebanon.

"Iran wanted us to withdraw from it but I stood firm," Netanyahu said. "We are keeping our freedom of action and we are keeping the security zone to protect" citizens in northern Israel. 

Israel has set up a "security zone" in southern Lebanon which it says it is using to defend northern Israeli communities from Hezbollah attacks.     

Hezbollah, an Iran-backed paramilitary group and political party, is regarded as a terror group by not only Israel, but also the US, Germany and many other countries.  

Lebanese government officials have derided the presence of Israeli forces in southern Lebanon as an occupation with Hezbollah saying it has fought back Israeli attempts to expand its territory. 

Vance: 'Deescalation mechanism' being set up to prevent more Israel-Hezbollah fighting 

US Vice President JD Vance, who was in Switzerland for talks on the US-Iran deal, said Monday that the US is setting up a "de-escalation mechanism" to prevent more fighting between Lebanon and Hezbollah. Vance had spoken with Lebanese President Joseph Aoun by phone earlier in the day.

Vance said this mechanism is to guarantee "that when things happen, they don't spiral into a broader escalation."

"We do believe... that we can get to a place where Lebanon's territorial integrity and sovereignty is protected, Israel's security is protected," Vance said. 

"That's going to require some coordination with the Lebanese Armed Forces, and also it's going to require the Iranians to rein in Hezbollah, Vance continued.   

US Secretary of State Marco Rubio will visit the United Arab Emirates, Kuwait and Bahrain from Tuesday, June 23 to Thursday, June 25, US State Department spokesperson Tommy Pigott said in a statement. 

Rubio will talk with officials regarding the US-Iran Memorandum of Understanding (MoU) along with "efforts to secure full and free safe transit through the Strait of Hormuz, and discussing shared priorities across the region with Gulf Cooperation Council members." 

The UAE, Kuwait and Bahrain are home to US military installations which have made them the target of Iranian attacks during the war. Iranian attacks also targeted oil refineries and other energy infrastructure belonging to Gulf Arab states.   

These attacks have disrupted the stability of the wealthy Gulf region, which serves as business hub in the Middle East. The MoU doesn't mention Iran's ballistic missile program, which could concern these Gulf allies of the US.

Another issue is the $300 billion (€262 billion) Iran reconstruction fund as outlined in the MoU, which Gulf states may see as a way for Iran to rebuild its military capacity after the war. 

In the latest post on his Truth Social account, US President Donald Trump said: "Everybody is fully aware that Iran will agree to have Major Weapons Inspections in order to ensure 'Nuclear Honesty' long into the future."

Earlier, US Vice President JD Vance said that Iran had agreed to allow in nuclear inspectors. 

International Atomic Energy Agency (IAEA) Director General Rafael Grossi has pushed for Iran to allow inspectors to view damaged nuclear sites that were hit by US and Israeli attacks. 

European countries are preparing a potential naval mission to restore safe passage, as reports of hidden sea mines, vessels switching off tracking systems, and the risk of renewed conflict have turned the Strait of Hormuz into a "black box," where ships lack visibility and insurers refuse coverage.

Germany, drawing on extensive mine-clearing experience in the North and Baltic Seas, is already positioning ships to play a key role.

Speaker of the Iranian Parliament and top Iranian negotiator Mohammad Bagher Ghalibaf is heading to Oman to discuss the Strait of Hormuz. 

While in the Omani capital of Muscat, Ghalibaf will meet Haitham bin Tariq, where the two sides will discuss joint efforts "to stabilize Iranian arrangements for managing the Strait of Hormuz."

Iranian Foreign Minister Abbas Araqchi will also be on the trip in Oman.  

The Memorandum of Understanding (MoU) between the US and Iran sees Iran and Oman conducting dialogue "to define the future administration and maritime services in the Strait of Hormuz in discussion with other Persian Gulf littoral states in line with the applicable international law and the sovereign rights of coastal states in the Strait of Hormuz."   

Iran's President Masoud Pezeshkian will visit Pakistan on Tuesday, Islamabad announced, where he is set to discuss the Memorandum of Understanding.

He will meet with Pakistani Prime Minister Shehbaz Sharif — a key mediator in the ongoing negotiations with the US — and other senior lawmakers.

"During the visit, the two sides will review the full spectrum of bilateral relations and explore new avenues to further deepen cooperation across diverse sectors including trade, energy border security, people-to-people exchanges, and regional connectivity," Pakistan's Foreign Ministry said in a statement.

"The visit will also provide an important opportunity to discuss ongoing diplomatic engagements following the signing of the Islamabad Memorandum of Understanding, as well as regional and international developments of mutual interest."

The US Treasury has issued a general license that authorizes the production, delivery and sale of Iranian oil.

The license effectively waives sanctions against Iranian oil until August 21 — the end date of a 60-day roadmap for the US and Iran to reach a more conclusive agreement.

"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," ‌Treasury ​Secretary Scott Bessent said in a post on X.

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

Iran will allow inspectors from the UN's nuclear watchdog, the International Atomic Energy Agency (IAEA), to once again work in the country, US Vice President JD Vance said on Monday.

"The Iranians have agreed to invite IAEA inspectors back into their country," Vance told reporters at the Bürgenstock Resort in Switzerland.

"That is a major milestone for the American people and the first step in permanently denuclearizing or permanently ending a nuclear weapons program in Iran."

Vance said he expected discussions for the inspectors to return to Iran to begin as soon.

"I expect that will happen at the minimum this week, but we think even some of those conversations with the inspectors... and with the IAEA could happen as soon as today," he said

The US previously said that Iran had agreed to dilute its enriched uranium stocks, possibly by "down-blending on site under the supervision of the IAEA."

The IAEA last estimated that Iran had 440 kilograms (970 pounds) of uranium enriched to 60%. Weapons-grade uranium is typically enriched to 90%.

Iran did not confirm that IAEA inspections were agreed upon in talks.

Foreign Ministry spokesperson Esmaeil Baghaei told the official IRNA news agency Monday that a "very brief discussion took place regarding the nuclear issue" and that Iran did not accept "any new commitments." 

Vance says 'good foundation' for final deal

In remarks to reporters after lengthy talks with senior Iranian officials, Vance expressed optimism about the overall state of negotiations.

"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," he added. 

 Iran said there had been "major progress" to end the fighting in Lebanon and called that the first real test of the negotiations.

Both host Switzerland and mediator Pakistan on Monday hailed 18-hours of "constrructive" discussions that took place a day earlier.

But those discussions were threatened to be derailed by social media posts made by the Donald Trump. Iranian state media had said on Sunday that talks were paused after "publication of an insulting message by the US president."

Ultimately, talks continued.

"Yes, they did threaten to walk out, or at least there were social media threats that they would walk out," US Vice President JD Vance said on Monday. "But we were negotiating well past one in the morning yesterday, so they didn’t walk out."

Some members of the Iranian delegation departed the Bürgenstock Resort in Switzerland to head back to Tehran, Iran's official Islamic Republic News Agency reported on Monday morning.

It’s unclear when members of the US delegation will depart Switzerland.

On Saturday, Vice President JD Vance told Fox News that he expected to stay for only "a day or two."

Much of the technical details are being handled on the US side by special envoys Jared Kushner and Steve Witkoff.

"We’ve talked about the [Strait of Hormuz], Lebanon, nuclear issues, and details of implementing the MOU, among other topics," an unnamed US diplomat told Reuters during the talks.

Oil prices edged lower on Monday off the back of progress announced in negotiations between Iran and the US in Switzerland.

Brent crude oil, the international benchmark, fell more than 1% to trade at $79.70 per barrel in afternoon Asian trade. It was trading at around $70 per barrel before the start of the war in late February.

"With the controversial — and fragile — US-Iran peace process now underway, attention is turning to how quickly tankers return to the Strait of Hormuz to load energy supplies," said Thomas Mathews, head of Asia-Pacific markets at Capital Economics, in a note to investors.

Moving towards a more permanent deal will be challenging, with very real risks of a flare-up in hostilities," ING commodities strategists Warren Patterson and Ewa Manthey in a commentary on Monday.

Iran's nuclear program was touched upon during talks with the US, Iranian Foreign Ministry spokesperson Esmail Baghaei said on Monday.

"One of the points raised by the American delegation was the presentation of its positions regarding the nuclear issue," Baghaei said.

"A very brief discussion took place regarding the nuclear issue, but there was no discussion of details, and it cannot be said that negotiations on the nuclear issue have begun."

Iran's semi-official Tasnim News Agency reported nuclear talks could only get underway once other parts of the Memorandum of Understanding were agreed upon, including those relating to frozen assets and allowing the resumption of Iranian oil exports.