US waives Iran sanctions after talks

The United States waived sanctions on Iran for 60 days from Monday after the first talks under a nascent peace deal, while officials reported a sustained lull in fighting in Lebanon under the agreement aimed at ending hostilities across the region.

The developments followed a weekend that had appeared to put the week-old accord in jeopardy, including threats from US President Donald Trump to restart the war if Iran disrupted shipping through the Strait of Hormuz after Tehran declared the strategic waterway closed. Tanker traffic through the strait started to pick up on Monday and oil prices resumed their slide.

US Vice-President JD Vance said talks with Iranian officials in Switzerland had laid a good foundation for a final peace deal, although Iran denied that it had begun discussions of its nuclear programme.

US-Israeli attacks on Iran, and Israeli strikes in Lebanon have killed thousands and displaced millions. The Iran war has also shaken markets around the world and raised global oil prices, which settled 3% lower on Monday after Vance reported progress had been made.

The two sides, trying to build on the interim deal they signed last week, agreed a roadmap towards a permanent agreement within 60 days at the talks in the Qatari-owned Swiss mountain resort of Buergenstock, mediators Pakistan and Qatar said.

They also agreed on a mechanism to end fighting in Lebanon between US ally Israel and Iran-aligned Hezbollah, and opened a communications line to help ensure safe passage for commercial ships through the Strait of Hormuz in order to avoid conflict in the strategic waterway.

In the first of several steps envisaged under the agreement to provide economic relief to Iran, the US Treasury announced a waiver until Aug 21 on sanctions, allowing Tehran to sell oil and related products and receive payment for them.

Vance Delivers Upbeat Assessment

Vance, who has maintained an upbeat tone since the memorandum of understanding was signed, said Tehran had agreed to allow in nuclear inspectors, and to establish mechanisms to handle its assets frozen abroad and manage ceasefires.