US temporarily suspends Iran oil sanctions; Vance confirms UN inspectors will return

The United States temporarily suspended sanctions on Iranian oil on Monday after Vice President JD Vance said Iran would allow UN nuclear inspectors to return to the country, following talks in Switzerland. Last week, Tehran and Washington signed a memorandum of understanding laying the groundwork for the negotiations.

Vance told reporters that "a very good foundation for a successful final deal" had been laid, adding that "the final deal is the house ... We haven't built the house, but we've laid a successful foundation." The US Treasury said it was temporarily lifting sanctions to allow Iran to produce, sell and deliver crude oil and related products through August 21. Treasury Secretary Scott Bessent cited Tehran's commitment to "free and open transit" in the Strait of Hormuz and permission for IAEA inspectors to enter their country as reasons for the pause.

Iranian Foreign Ministry spokesman Esmaeil Baqaei said "a very brief discussion took place regarding the nuclear issue, but there was no discussion of details" and that nuclear talks had not begun. Vance, however, said Tehran had agreed to invite IAEA inspectors "back to their country", calling it "a major milestone ... and the first step in permanently denuclearising" Iran.

As part of the deal, Tehran is set to get some form of sanctions relief and the unfreezing of assets. Vance insisted assets had not yet been unfrozen and that, if they were, they would be used to buy US goods such as soy beans and would not fund terrorism. He called it "a classic Trump deal." Iran's Foreign Minister Abbas Araghchi posted on social media: "Oil and petrochem exports are waived, blockade lifted, some frozen assets released, and major reconstruction & development plan launched for Iran."

US Secretary of State Marco Rubio is due to start a trip to the UAE, Kuwait and Bahrain to discuss the deal and efforts to secure free transit through the Strait of Hormuz. Iran's negotiating delegation, including Ghalibaf and Araghchi, left Tehran for Muscat to discuss joint efforts to stabilise arrangements for managing the strait.

Mediators Pakistan and Qatar said the negotiators reached agreement on a "roadmap towards reaching a final deal within 60 days," with a contact channel set up to avoid incidents in the Strait of Hormuz. In Lebanon, where fighting between Israel and Iran's ally Hezbollah threatened the ceasefire, a "de-confliction cell" has been agreed to prevent renewed fighting. Israeli Prime Minister Benjamin Netanyahu insisted Israeli troops have full freedom of action in south Lebanon. The death toll from the Lebanon fighting has surpassed 4,100, and damage to buildings in south Lebanon is estimated at $1.38 billion.