Trump waives Iran sanctions for 60 days following a breakthrough round of peace negotiations in Switzerland, marking the most significant diplomatic development between Washington and Tehran in months. The temporary sanctions relief, announced by the United States after high-level talks, is intended to encourage further negotiations toward a permanent agreement, but President Donald Trump made it clear that Iran’s compliance will determine whether the concessions remain in place.
The announcement came after senior officials from both countries concluded negotiations at the Swiss mountain resort of Buergenstock, where mediators from Qatar and Pakistan helped both sides establish a roadmap for a comprehensive peace agreement expected to be negotiated within the next 60 days.
While the sanctions waiver offers Tehran immediate economic relief by allowing oil exports and related transactions, Trump stressed that the United States would not hesitate to respond if Iran failed to honour its commitments.
“If Iran doesn’t live up to their agreement, or if they’re not behaving, I will do what I have to do,” Trump told reporters after posting a similar warning on Truth Social.
The U.S. Treasury confirmed that the waiver, effective immediately, permits Iran to sell oil and petroleum-related products and receive payments until August 21, representing the first major economic incentive under the emerging peace framework.
Peace Talks Produce Roadmap Toward Permanent Agreement
The negotiations in Switzerland marked the first formal discussions since the United States and Iran signed an interim peace understanding last week following weeks of military escalation that shook the Middle East and rattled global financial markets.
Officials from both sides described the talks as constructive, with mediators confirming that Washington and Tehran had agreed on a roadmap designed to produce a permanent peace agreement within 60 days.
Beyond the sanctions waiver, the negotiations also focused on broader regional security challenges, including reducing tensions in Lebanon and protecting international shipping through the Strait of Hormuz, one of the world’s most strategically important waterways for global energy supplies.
The diplomatic progress immediately reassured investors, contributing to another decline in global oil prices after concerns over supply disruptions eased.
JD Vance Says Negotiators Built Strong Foundation
U.S. Vice President JD Vance struck an optimistic tone after participating in the negotiations, saying both sides had made meaningful progress despite several complex issues remaining unresolved.
“We laid a very good foundation for a successful final deal,” Vance told reporters after the meeting.
According to Vance, discussions covered several sensitive subjects, including future nuclear inspections, procedures for managing Iran’s frozen overseas assets and mechanisms designed to preserve regional ceasefires.
He suggested that the talks demonstrated a willingness by both countries to continue diplomatic engagement despite years of hostility and mutual distrust.
However, several important issues remain unresolved, particularly concerning Iran’s nuclear programme and the conditions attached to sanctions relief.
Iran Rejects US Account of Nuclear Discussions
Despite Washington’s positive assessment, Iranian officials offered a notably different interpretation of what had been achieved during the talks.
Foreign Ministry spokesperson Esmaeil Baghaei denied reports suggesting that Tehran had entered formal negotiations over its nuclear programme or accepted new obligations regarding international inspections.
Iran has consistently maintained that its nuclear programme is intended solely for peaceful civilian purposes and has rejected allegations that it seeks to develop nuclear weapons.
The disagreement highlights the significant diplomatic hurdles that negotiators must overcome before a comprehensive agreement can be finalised.
President Trump nevertheless expressed confidence that Tehran would eventually accept international weapons inspections designed to guarantee what he described as “nuclear honesty.”
Iran has significantly limited cooperation with inspectors from the International Atomic Energy Agency since military tensions escalated following U.S. and Israeli air strikes last year, eventually suspending inspections altogether after full-scale conflict erupted earlier this year.
US and Iran Differ Over Release of Frozen Assets
Another major issue emerging from the negotiations concerns the future management of billions of dollars in Iranian assets frozen abroad under previous sanctions.
Vice President Vance disclosed that White House envoy Jared Kushner had proposed a mechanism under which the United States and Qatar would supervise the released funds to ensure they are used for approved purchases.
According to Vance, the proposal would allow Iran to use part of the released money to purchase American agricultural exports, including corn, soybeans and wheat.
Trump reinforced that proposal during remarks to reporters.
“So, the money that we lift is going to go to our farmers,” the president said.
Read also: Trump threatens Iran over Strait of Hormuz as Tehran fires back: ‘It’s not your personal casino’
Iran, however, quickly rejected that interpretation.
Its Central Bank Governor, Abdolnaser Hemmati, insisted Tehran had accepted no such restriction and maintained that at least part of the released funds could be spent on other non-sanctioned goods from international markets.
The disagreement illustrates that although both governments have achieved important diplomatic progress, significant differences remain over how the agreement will ultimately operate in practice.
Strait of Hormuz Shipping Recovers as Tensions Ease
One of the most significant outcomes of the Switzerland talks was an agreement to establish a direct communication mechanism aimed at preventing conflict in the Strait of Hormuz, the narrow waterway through which nearly a fifth of the world’s oil supply passes.
The agreement comes after weeks of heightened tensions that disrupted commercial shipping, increased insurance costs for vessels and pushed global oil prices higher amid fears that the strategic route could become a flashpoint in the wider regional conflict.
Following Monday’s diplomatic breakthrough, tanker traffic through the Strait of Hormuz began to recover as confidence slowly returned to international shipping companies.
Oman’s foreign minister also reaffirmed the country’s commitment to ensuring safe and toll-free navigation through the waterway while diplomatic negotiations continue.
The improvement in maritime security was welcomed by global markets, with crude oil prices extending losses after dropping about three percent the previous trading session. Investors interpreted the latest developments as a sign that fears of prolonged disruptions to global energy supplies may be easing.
Lebanon Ceasefire Shows Signs of Holding
The negotiations also produced progress beyond the U.S.-Iran relationship, particularly in neighbouring Lebanon, where violence has escalated in recent months between Israel and the Iran-backed Hezbollah movement.
Although Israel was not directly involved in the Switzerland talks, mediators announced that both sides had agreed on a mechanism intended to help sustain the fragile ceasefire reached in Lebanon.
Officials reported a significant reduction in hostilities after days of intense fighting.
While Israel has maintained that it will continue enforcing a security zone in southern Lebanon and take action against any threats to its forces or civilians, Lebanese authorities confirmed that violence has eased considerably since the weekend.
The latest diplomatic efforts are expected to receive further attention in Washington, where Israeli and Lebanese representatives are scheduled to begin another round of discussions aimed at strengthening the ceasefire and preventing renewed clashes along the border.
For many observers, the reduction in fighting represents one of the first tangible signs that broader regional diplomacy could produce meaningful security improvements beyond the immediate U.S.-Iran negotiations.
Conflicting Narratives Highlight Remaining Challenges
Despite the positive tone surrounding the talks, several disagreements continue to cast uncertainty over the path toward a permanent agreement.
Washington has portrayed the negotiations as a breakthrough that includes discussions on nuclear inspections, sanctions relief and the management of frozen Iranian assets.
Iran, however, has disputed several aspects of the American account.
Foreign Ministry spokesperson Esmaeil Baghaei insisted that Tehran has not entered negotiations over its nuclear programme or accepted any new commitments regarding international inspections.
Meanwhile, Iranian Foreign Minister Abbas Araqchi announced that Tehran had successfully secured sanctions waivers covering oil and petrochemical exports, the release of some frozen overseas assets and plans for national reconstruction and economic development.
The differing public statements illustrate the delicate nature of the negotiations, with each government seeking to reassure domestic audiences while preserving room for further bargaining behind closed doors.
Diplomatic analysts believe these differences are not unusual during complex international negotiations but acknowledge that bridging them will be essential if both countries hope to reach a lasting settlement before the 60-day timeline expires.
Technical Negotiations Continue This Week
While political leaders celebrated the progress achieved in Switzerland, officials emphasised that substantial work remains before a comprehensive peace agreement can be concluded.
Technical teams from both countries are expected to continue negotiations throughout the week, focusing on the detailed implementation of the framework agreed by senior officials.
Among the issues requiring further discussion are verification procedures, sanctions implementation, management of frozen assets, regional security arrangements and mechanisms for maintaining compliance with any future agreement.
The success of these negotiations will determine whether the temporary sanctions waiver evolves into a permanent easing of economic restrictions or whether both sides return to confrontation.
President Trump’s warning underscored the conditional nature of the agreement.
“If Iran doesn’t live up to their agreement, or if they’re not behaving, I will do what I have to do,” he said, making it clear that Washington expects full compliance from Tehran.
For Iran, the sanctions waiver offers an opportunity to revive vital oil exports and provide much-needed relief to its economy after years of financial restrictions.
For the United States, the agreement represents an attempt to reduce regional instability while maintaining pressure on Tehran to fulfil its commitments.
A Defining Moment for Middle East Diplomacy
The coming weeks are expected to prove decisive for one of the most closely watched diplomatic initiatives in recent years.
The temporary sanctions waiver has created an opportunity for Washington and Tehran to rebuild confidence after months of military confrontation that threatened to destabilise the Middle East and disrupt the global economy.
If negotiators succeed in resolving their remaining differences over nuclear inspections, frozen assets and regional security, the current framework could pave the way for a broader peace agreement capable of reshaping relations between the two countries.
However, significant challenges remain, and the contrasting interpretations emerging from Washington and Tehran demonstrate that trust between the longtime adversaries remains fragile.
With technical negotiations continuing and the 60-day deadline now in motion, the international community will be watching closely to see whether the diplomatic momentum generated in Switzerland can produce a durable peace—or whether fresh disagreements will once again push the region toward renewed uncertainty.
