The US suspended sanctions against Iran on Monday as the two sparred over nuclear and weapons inspections during a day of talks that US Vice President JD Vance characterised as "good progress".
US Treasury Secretary Scott Bessent announced it would be temporarily lifting sanctions until 21 August under a 60-day general licence that authorises Iranian oil production and sales. Any transactions during this period must be made in US dollars.
"In line with the ongoing productive talks in Switzerland, Iran has committed to free and open transit in the Strait of Hormuz and to permit International Atomic Energy Agency (IAEA) inspectors into their country," Bessent wrote on X.
The lifting of sanctions will be a boon for Iran which used to produce around 4.6 million barrels of oil per day, exporting around 1.5 million barrels per day before the US imposed its own blockade to compete with Iran's closure of the Strait of Hormuz.
The move has been framed by the US as a concession made in response to Iran opening up the Strait of Hormuz and allowing IAEA inspectors into the country but the Iranian government has cast doubt on that version of events.
