US eases Iran oil sanctions with 60-day waiver

Pakistan, Qatar report ‘encouraging progress’ in Lucerne Negotiators chart 60-day path to final deal Welcomed by PM

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), announcing the establishment of mechanisms to guide the two sides towards a comprehensive agreement within 60 days.

A joint statement issued by Pakistan and Qatar after the conclusion of the Lake Lucerne Summit in Burgenstock, Switzerland, said the negotiations were conducted in a “positive and constructive atmosphere” and resulted in the creation of a road map for further negotiations as well as technical working groups to address key issues.

The four-party talks brought together senior officials from Iran, the United States, Pakistan and Qatar. Vice President JD Vance led the American side, while Muhammad Bagher Ghalibaf, Speaker of the Iranian Parliament, led 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 even though the Iranian side did not show up for the photo op and withdrew from the negotiations to protest President Trump’s latest threats, the mediators managed to get the process back on track and ultimately persuaded the two sides to agree on some issues.

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

“The High-Level Committee agreed on a roadmap aimed at reaching a final agreement within 60 days, thus laying the foundations for the immediate start of new technical discussions,” the statement added.

As part of the 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 vessels through one of the world’s most strategic waterways.

The mediators further announced the creation of a deconfliction 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 Memorandum of Understanding.

Meanwhile, Prime Minister Shehbaz Sharif welcomed “significant progress” in the talks, highlighting “agreement on a roadmap towards a final deal within 60 days, the creation of a high-level committee to ensure political oversight and the start of new technical discussions.”

He commended the leaders of the United States and Iran for their continued commitment to constructive engagement and thanked friendly countries for their support of the diplomatic process. He paid particular tribute to Qatar for its role in facilitating the negotiations.

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

Reaffirming Islamabad’s diplomatic commitment, the Prime Minister said Pakistan would continue to play its “honest and sincere role” in promoting dialogue aimed at achieving a peaceful and lasting resolution.

While the joint statement projected optimism, public comments from Iranian and U.S. officials highlighted significant differences over what exactly was achieved during the marathon negotiations.

Iranian Foreign Minister Abbas Araghchi described the outcome as the result of “tireless mediation by Pakistan and Qatar”, saying the talks had brought major progress towards ending the conflict in Lebanon.

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

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

“Iran is committed to ensuring free and open transit through the Strait of Hormuz and allowing inspectors from the International Atomic Energy Agency (IAEA) to enter its country,” Bessent wrote on X, adding that the Treasury Department had issued a temporary general license authorizing the production, delivery and sale of Iranian oil.

The waiver allows Iran to export oil without sanctions restrictions until August 21, which could provide significant relief to Tehran’s economy after years of punitive measures.

U.S. Vice President JD Vance also painted an optimistic picture, calling Sunday’s negotiations a “very, very good” day and saying both sides had laid the groundwork for a broader deal. “We laid the foundation – we didn’t build the house – but we laid a solid foundation to get to a good place for the American people,” Vance said.

The vice president identified four key priorities moving forward and said 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 further escalation between Israel and Hezbollah in southern Lebanon and laid out a framework for a possible unfreezing of Iranian assets under a mechanism involving monitoring by the United States and Qatar.

However, Iranian officials quickly disputed some of Washington’s claims, highlighting the difficult road ahead despite the positive atmosphere that has surrounded the talks. Iranian Foreign Ministry spokesman Esmail Baghaei rejected suggestions that Tehran had agreed to new commitments on nuclear inspections.

According to Iran’s official IRNA news agency, Baghaei said Iran remains 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.

Responding directly to the US claims, Baghaei said Iran had not taken on any new obligations during the negotiations. IRNA, citing officials close to the negotiations, reported that Tehran did not discuss the nuclear issue during about 18 hours of talks and did not agree to any new commitments.

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

The conflicting public statements reflected the same pattern that emerged before the Swiss talks, when U.S. officials and mediators repeatedly described the negotiations as progressing smoothly while media and Iranian officials expressed reservations on key issues.

Despite these differences, diplomats involved in the process believe that the creation of formal working groups, a political oversight mechanism and direct communication channels represents the most concrete progress made since the signing of the Islamabad Memorandum of Understanding.

Technical discussions are expected to continue throughout the week in Burgenstock, as negotiators seek to translate the broad agreements reached at the Lake Lucerne summit into a comprehensive deal capable of addressing nuclear concerns, sanctions relief, maritime security and regional stability.

(WITH THE CONCLUSION OF THE AGENCIES)

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