The Trump administration temporarily lifted oil sanctions against Iran on Monday, marking a sharp policy reversal that could deliver an economic boost to Tehran after years of discounted sales under U.S. penalties.
Treasury Secretary Scott Bessent said the 60‑day exemption, which allows Iranian oil purchases in U.S. dollars and expands Tehran’s access to American currency, resulted from “ongoing productive” talks with Iran in Bürgenstock, Switzerland.
Vice President JD Vance, leading the U.S. negotiating team in Bürgenstock, said Iran had agreed to permit United Nations inspectors to visit its nuclear sites, calling the move “a major milestone for the American people and the first step toward permanently ending a nuclear weapons program in Iran.”
President Trump posted on social media Monday: “Everybody is fully aware that Iran will agree to have Major Weapons Inspections in order to ensure ‘Nuclear Honesty’ long into the future.”
It remains uncertain whether inspectors will actually travel to Iran. The International Atomic Energy Agency (IAEA) had not responded to the comments by President Trump and Vice President Vance at press time. Iranian foreign ministry spokesman Esmail Baghaei told state news agency IRNA that Tehran has made “no new commitments” on nuclear inspections and that any cooperation with IAEA inspectors will follow “existing procedures.”
At a news conference in Bürgenstock, Mr. Vance also announced new communication channels aimed at easing tensions in the Strait of Hormuz and Lebanon, where Israeli and Hezbollah attacks appear to have moderated. These two issues have been complicating a fragile cease‑fire between the United States and Iran.
“This is a work in progress,” Mr. Vance said, adding that the new Lebanon process will help “ensure it doesn’t spiral out of control in the future.”
Overall, Mr. Vance said the negotiations that began Sunday have laid a “very good foundation” for a final peace deal. Mediators from Qatar and Pakistan reported “encouraging progress.”
Restoring IAEA inspections and lifting U.S. sanctions would effectively revive key elements of the 2015 Obama‑era nuclear accord. President Trump withdrew the U.S. from that deal in 2018 and called it “one of the Worst Deals ever” in a recent April social‑media post.
After President Trump withdrew from the 2015 nuclear accord, Iran curtailed inspections. It later barred IAEA inspectors following a June 2025 twelve‑day conflict in which Israel and the United States bombed Iranian nuclear facilities.
Iranian officials accused the IAEA of providing political cover for the strikes, noting that the attacks occurred after the agency passed a resolution declaring Tehran non‑compliant with its nuclear non‑proliferation obligations.
The status of Iran’s highly enriched uranium stockpile has been unknown since the twelve‑day war. Tehran claims the material was destroyed or buried during the bombings. Under a memorandum of understanding signed with the United States last week, Iran agreed to dilute the stockpile under IAEA supervision.
Iran maintains that its nuclear program is solely for civilian use, and President Masoud Pezeshkian said Sunday that Iran would “never back down” from its right to enrich uranium. IAEA Director Rafael M. Grossi was present in Bürgenstock over the weekend, meeting with Switzerland’s foreign minister.
The memorandum also obliged the Trump administration to temporarily lift U.S. sanctions on Iran’s oil sector, which had been imposed to cripple its economy. On Monday, the Treasury issued a 60‑day license permitting production, delivery, and sale of Iranian oil under the preliminary deal. This could generate a windfall for Tehran after years of selling discounted oil under risk of U.S. penalties.
The administration had signaled readiness to provide Iran financial incentives if Tehran reopened the Strait of Hormuz, a crucial oil shipping lane that Iran effectively closed during the war, causing a spike in global energy prices.
Mr. Bessent wrote on social media Monday: “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.”
Iranian officials reported progress in Switzerland regarding access to $24 billion in frozen assets. Central Bank Governor Abdolnaser Hemmati told Tasnim news agency Monday that “the necessary memorandums were signed” on the first day of talks to begin releasing those assets.
U.S. officials have not confirmed a plan to release the assets. However, Vice President Vance said any unfreezing would require Iran to spend the funds on U.S. commodities like soy and wheat, and would bar the money from financing terrorism.
Mr. Vance said, crediting Jared Kushner, President Trump’s son‑in‑law and a key negotiator, “If Iranian assets are ever unfrozen, they’re going to go to make American farmers richer and to feed the Iranian people.” The United States and Qatar will oversee the process, he added.
As he prepared to depart Switzerland, Mr. Vance said a small team of U.S. and Iranian officials would stay behind to continue technical discussions, with both sides pledging to finalize an accord within 60 days.
“As much as this place is very beautiful, I can’t stay here for the next 60 days,” Mr. Vance remarked.
Iran’s senior negotiators, Parliamentary Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi, traveled to Oman on Monday to discuss a new mechanism for overseeing ship traffic in the Strait of Hormuz, according to Iranian state media.
Iran has indicated it intends to charge “fees” for unspecified “services” in the waterway, while President Trump has stated his desire for the strait to remain “permanently toll‑free.”
Reporting was contributed by Shirin Hakim, Erika Solomon and Leo Sands.
