US Eases Iran Sanctions After Vance Announces Nuclear Deal
The United States has partially lifted sanctions on Iranian oil exports after Vice President JD Vance announced that Tehran has agreed to resume international nuclear inspections, marking what the administration is calling a major diplomatic breakthrough in the long-running nuclear standoff.
The US Treasury issued a 60-day general license on Monday authorizing the production, delivery, sale, and importation of Iranian-origin crude oil, petroleum products, and petrochemicals through August 21, 2026. The waiver follows the first round of face-to-face talks between US and Iranian negotiators in Bürgenstock, Switzerland, which lasted approximately 18 hours and produced what mediators described as “encouraging progress.”
The Nuclear Inspections Announcement
Speaking after the talks concluded, Vice President Vance said Iran had agreed to allow inspectors from the International Atomic Energy Agency (IAEA) back into the country for the first time since they were withdrawn following the US-Israeli bombing campaign in June 2025.
“That is a major milestone for the American people, and the first step in permanently ending a nuclear weapons programme in Iran,” Vance told reporters, as reported by the BBC. He said conversations with the IAEA “could happen as soon as today” and that the process would begin “at a minimum this week.”
US Treasury Secretary Scott Bessent confirmed the development, stating on social media that Iran had committed to permitting IAEA inspectors into the country as part of the framework, according to Al Jazeera.
Iranian Denials and Internal Divisions
However, a significant discrepancy has emerged between US and Iranian accounts of what was agreed. Multiple Iranian sources have publicly denied that nuclear issues were discussed or that new commitments were made during the Switzerland talks.
The IRGC-affiliated Fars news agency, citing an informed source, denied Vance’s claim that IAEA inspectors would return to Iran, stating the issue was “not discussed” in the negotiations, as Iran International reported. Iran’s Foreign Ministry spokesman Esmaeil Baghaei said Tehran’s engagement with the IAEA would continue “in accordance with current procedures” and denied that new commitments were accepted.
This contradiction highlights the deep internal divisions within Iran’s power structure. The IRGC-affiliated Tasnim news agency warned that allowing IAEA inspectors back would collapse Iran’s policy of “nuclear ambiguity” — keeping the location of enriched material uncertain — which it described as a key strategic asset against Washington. Meanwhile, Iran’s Supreme Leader Mojtaba Khamenei has endorsed direct negotiations, and the civilian government under President Masoud Pezeshkian has engaged fully in the diplomatic process.
The Broader Deal: Strait of Hormuz and Oil Markets
The sanctions waiver is a key component of the 14-point Memorandum of Understanding signed on June 17 by President Donald Trump and Iranian President Masoud Pezeshkian. Under the agreement, Iran committed to ensuring free and open transit through the Strait of Hormuz, a critical chokepoint for global oil shipments that had been at the center of the conflict.
The impact on oil markets was immediate. Brent crude dropped over 3.5% to $77.7 per barrel upon news of the waiver. Four Qatari-operated LNG tankers and two supertankers entered the Gulf through the strait on Monday, with more than 12.5 million barrels of oil passing through on the night of June 21 — the highest volume since the conflict began in late February, according to shipping data cited by India Today.
Congressional and International Reactions
The deal has drawn sharp criticism from both sides of the aisle in Washington. Republican Senator Ted Cruz of Texas called the agreement “an exceptionally bad idea,” while Democratic Senator Chris Coons described it as “pathetic” and a “failure,” as the Associated Press reported.
Israel has also expressed opposition. Prime Minister Benjamin Netanyahu vowed that Israeli forces would remain in southern Lebanon “for as long as Israel’s security needs require it,” despite the deal’s call for an end to hostilities on all fronts. Vance issued an extraordinary public rebuke to Israeli officials criticizing the agreement, warning that Trump “is the only head of state in the entire world who is sympathetic to the nation of Israel at this moment in time.”
The 60-Day Roadmap
The MoU triggers a 60-day negotiating period to reach a final deal on the future of Iran’s nuclear program. Mediators Qatar and Pakistan issued a joint statement saying the parties agreed to “a roadmap towards reaching a final deal within 60 days.” Both sides also agreed to create a “de-confliction cell” between the US, Iran, and Lebanon to end military operations in Lebanon.
Vance said any unfreezing of Iranian assets would take place under a controlled process to ensure the money benefits Iranians and does not fund terrorism. The Iranian central bank governor said the use of blocked assets would begin gradually in the coming days.
What’s Next
The most critical question remains whether IAEA inspections will actually proceed. The direct contradiction between US and Iranian accounts suggests either a misunderstanding between the negotiating teams, deliberately vague language in the MoU, or internal Iranian divisions that could derail the process. Iran’s delegation, led by Parliament Speaker Mohammad Bagher Ghalibaf, has departed for Oman for follow-up talks on Strait of Hormuz management, while technical discussions between the parties are set to continue.
President Trump has left the door open to resuming attacks if Iran falters on its commitments, and the US military maintains a significant naval presence in the region. The next 60 days will determine whether this tentative diplomatic opening leads to a lasting resolution or collapses back into conflict.