US President JD Vance (Photo: Ryan Collerd/AFP)
The US on Monday suspended sanctions on Iranian oil after Vice President JD Vance said Iran would allow UN nuclear inspectors to return to the country.
“We have laid a very good foundation for a successful final agreement,” Vance told reporters after talks at Switzerland’s luxury Burgenstock resort aimed at ending the US-Israeli war with Iran.
Esmaeil Baqaei, spokesman for the Iranian Foreign Ministry, said that “a very brief discussion took place on the nuclear issue, but there was no discussion of details”.
In Washington, President Donald Trump said the Strait of Hormuz is now “completely open” to shipping. Iran closed the waterway early in the war, sending economic shockwaves around the world.
“We’re negotiating – we’ll see how it all goes – but we have two things,” Trump said. “We have an open strait and we have a country that will never have a nuclear weapon.”
Mohammad-Bagher Ghalibaf, Iran’s chief negotiator, meanwhile said the Strait of Hormuz would be administered by Tehran, according to state media reports.
“The Strait of Hormuz will never return to pre-war conditions and will be administered by the Islamic Republic of Iran, in accordance with international law,” Ghalibaf said upon his return from the talks, according to IRNA.
A cargo ship off the coast of Fujairah in the northern Emirates. (Photo: Giuseppe Cacace/AFP)
The Strait of Hormuz reopened last week after the US and Iran reached an agreement. However, Tehran announced on Saturday that it had closed the strait again in response to Israeli attacks in Lebanon.
Since then, the US and Iran have agreed to establish a line of communication “to avoid incidents and miscommunication with the aim of ensuring safe passage for commercial ships” through the strait.
Maritime traffic in the strait continued to flow at a faster rate on Monday than before the agreement.
The US and Iran signed a memorandum of understanding last week that lays the foundation for the Switzerland negotiations.
The negotiations are aimed at tackling some of the most stubborn issues, including Tehran’s nuclear program.
The US Treasury said it was temporarily lifting sanctions on Iran to allow it to produce, sell and deliver crude oil and related products until August 21.
Vance said Tehran had agreed to invite IAEA inspectors “back to their country”, calling it “an important milestone”.