Key facts
- US Vice President JD Vance described recent US-Iran talks in Switzerland as a "good foundation for a successful final deal" to end the ongoing war.
- The negotiations focused on ensuring the Strait of Hormuz remains open and addressing the conflict between Israel and Hezbollah.
- An interim agreement, signed by US President Donald Trump and Iranian President Masoud Pezeshkian, establishes a 60-day period for further negotiations.
- The US Treasury issued a 60-day waiver on sanctions on Iranian oil as part of the interim agreement.
- Following the talks and interim deal, Brent crude oil prices fell 3.2% and US crude oil prices fell 2.6%.
US Vice President JD Vance stated that direct talks with senior Iranian officials in Switzerland have created a "good foundation for a successful final deal" to permanently end the war that the US and Israel initiated in late February. The discussions, held at the Bürgenstock Resort, aimed to establish mechanisms for keeping the Strait of Hormuz open and to address the conflict between Israel and Iranian-backed Hezbollah militants in southern Lebanon.
An interim agreement, signed last week by US President Donald Trump and Iranian President Masoud Pezeshkian, sets a 60-day period for negotiations on key issues, including Iran's nuclear program. Vance departed Switzerland as technical teams continued negotiations. President Trump emphasized the importance of mutual respect in resolving the conflict and ensuring the Strait of Hormuz remains open, describing it as an "oil gusher."
Iran had effectively closed the Strait of Hormuz after the US and Israel began their attacks, leading to a significant surge in fuel prices. The interim agreement stipulated the reopening of this strategic channel. While Iran's lead negotiator, Mohammad Bagher Ghalibaf, insisted that Tehran would manage the Strait of Hormuz in accordance with international laws, tanker traffic has begun to increase. Data indicates 71 confirmed transits through the Strait over the weekend, with 35 crossings on Saturday, though this is still below the pre-war daily average of 100 to 130 vessels.
Following the developments, Brent crude oil prices fell by 3.2% to $77.52 per barrel, and benchmark US crude oil prices dropped by 2.6% to $73.86 per barrel. The US Treasury also issued a 60-day license waiving sanctions on Iranian oil, allowing imports into the US for the first time in decades. Iranian Foreign Minister Abbas Araghchi and Ghalibaf met with Oman's Foreign Minister Badr al-Busaidi in Muscat to discuss peace efforts and safe navigation in the Strait of Hormuz.