US eases Iran oil sanctions with 60-day waiver

Pakistan, Qatar report ‘encouraging progress’ at Lucerne Traders chart 60-day path to final deal.

ISLAMABAD:

Pakistan and Qatar on Monday reported “encouraging progress” in the first high-level talks between the United States and Iran held under the Islamabad Memorandum of Understanding (MoU), which heralds the establishment of mechanisms aimed at steering the two sides toward a comprehensive agreement within 60 days.

A joint statement issued by Pakistan and Qatar after the conclusion of the Lake Lucerne summit in Bürgenstock, Switzerland, said the talks were conducted in a “positive and constructive atmosphere” and resulted in the creation of a roadmap for further negotiations as well as technical working groups tasked with addressing key issues.

The four-way talks were attended by senior officials from Iran, the United States, Pakistan and Qatar. Vice President JD Vance led the American side, while Muhammad Bagher Ghalibaf, the Speaker of the Iranian Parliament, headed the Iranian side.

Prime Minister Shehbaz Sharif and Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani moderated the talks, which became tense at times. But despite the Iranian side not appearing for a photo op and walking out of the talks in protest of President Trump’s latest threats, the mediators managed to get the process back on track and eventually persuaded the two sides to agree on certain points.

The joint statement said the parties agreed to establish a “high-level committee” to provide political oversight of the mediation process. “Chief negotiators from both sides will regularly report to the committee and lead working groups focused on nuclear issues, sanctions, monitoring and dispute settlement mechanisms, among other issues,” it said.

“The high-level committee has agreed on a roadmap to reach a final agreement within 60 days, laying the groundwork for the immediate commencement of further technical talks,” the statement added.

As part of confidence-building measures, the parties also agreed to establish a direct line of communication to prevent incidents and miscalculations in the Strait of Hormuz and ensure the safe passage of commercial shipping through one of the world’s most strategic waterways.

The mediators further announced the creation of a de-confliction cell involving Iran, the United States and Lebanon to oversee the implementation of provisions related to the cessation of military operations in Lebanon envisaged under the Islamabad MoU.

Meanwhile, Prime Minister Shehbaz Sharif welcomed the “significant progress” in the talks, pointing to the “agreement on a roadmap towards a final agreement within 60 days, the establishment of a high-level committee to provide political oversight, and the commencement of further technical negotiations”.

He praised the leadership of both the United States and Iran for their continued commitment to constructive engagement and thanked friendly countries for supporting the diplomatic process. He particularly praised Qatar for its role in facilitating the negotiations.

Sharif praised the Chief of Defense and Chief of Army Staff Field Marshal Asim Munir for helping to advance the process, saying his “tireless efforts made these talks a success” and that there would have been “no progress” without his dedication and perseverance.

Reaffirming Islamabad’s commitment to diplomacy, the prime minister said Pakistan would continue to play its “honest and sincere role” in promoting dialogue aimed at achieving a peaceful and lasting solution.

While the joint statement foretold optimism, public comments from Iranian and US officials highlighted significant differences in what exactly was achieved during the marathon talks.

Iranian Foreign Minister Abbas Araghchi described the outcome as the result of “tireless Pakistani and Qatari mediation” and said the talks had made major progress towards ending the Lebanon conflict.

According to Araghchi, the understandings reached include waivers for oil and petrochemical exports, the lifting of the naval blockade, the release of some frozen Iranian assets and the launch of a major reconstruction and development plan for Iran. “The first real test will be the Lebanon deconfliction cell,” he said.

In a major move signaling Washington’s commitment to the process, the Trump administration announced a temporary 60-day waiver for sanctions related to Iranian oil exports. US Treasury Secretary Scott Bessent said the waiver was issued after “productive talks” in Switzerland.

“Iran has committed to free and open transit in the Strait of Hormuz and to allow inspectors from the International Atomic Energy Agency (IAEA) into their country,” Bessent wrote on X, adding that the Treasury had issued a temporary general license authorizing the production, supply and sale of Iranian oil.

The exemption allows Iran to export oil without sanctions restrictions until August 21, potentially providing significant relief to Tehran’s economy after years of punitive measures.

US Vice President JD Vance also painted an upbeat picture, calling Sunday’s talks a “very, very good” day and saying the two sides had laid the groundwork for a broader deal. “We laid the foundation — we didn’t build the house — but we laid a successful foundation to get to a good place for the American people,” Vance said.

The vice president identified four key priorities moving forward and claimed Iran had agreed to admit IAEA inspectors, describing the move as “a major milestone” and the first step toward permanently ending any Iranian nuclear weapons program.

Vance also cited progress in discussions aimed at preventing renewed escalation between Israel and Hezbollah in southern Lebanon and outlined a framework for the possible release of Iranian assets under a mechanism involving US and Qatari oversight.

However, Iranian officials quickly challenged some of Washington’s claims, underscoring the difficult road ahead despite the positive atmosphere surrounding the talks. Iranian Foreign Ministry spokesman Esmail Baghaei rejected suggestions that Tehran had accepted new commitments on nuclear inspections.

According to Iran’s state news agency IRNA, Baghaei said Iran remained bound by the decisions of parliament and the Supreme National Security Council. Under legislation passed last year, cooperation with the IAEA and inspections remain suspended.

In a direct response to US claims, Baghaei said Iran had not made any new commitments during the talks. IRNA, citing officials familiar with the talks, reported that Tehran did not discuss the nuclear issue during approximately 18 hours of talks and did not accept any new commitments.

The report added that any future arrangement regarding access to damaged nuclear facilities or Iran’s stockpile of enriched uranium would depend on a specific mechanism to be negotiated as part of a final agreement during the 60-day process.

The conflicting public statements reflected the same pattern that had emerged before the talks in Switzerland, with US officials and mediators repeatedly describing the talks as proceeding smoothly, while Iranian media and officials signaled reservations on key issues.

Despite these differences, diplomats involved in the process believe that the establishment of formal working groups, a political oversight mechanism and direct communication channels represent the most concrete progress achieved since the Islamabad MoU was signed.

Discussions at the technical level are expected to continue throughout the week in Bürgenstock as negotiators seek to translate the broad understandings reached at the Lucerne summit into a comprehensive agreement capable of addressing nuclear concerns, sanctions, maritime security and regional stability.

(WITH INPUT FROM AGENCIES)

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