US, Iran Peace Talks In Switzerland 'Made Major Progress' Amid Trump Threats

UPDATE | Vance Says Iran To Allow IAEA Inspectors, Amid US-Iran Talks In Switzerland

Vice President JD Vance declared "great progress" in U.S.-Iran talks held in Switzerland, confirming that Tehran agreed to allow International Atomic Energy Agency (IAEA) inspectors back into the country as a "major milestone" toward ending its nuclear weapons program. He said his team unsuccessfully attempted to call nuclear inspectors at 2:00 AM during the crunch talks.

Despite acknowledging "threatening and whining" from Iranian officials and social media threats to walk out over President Trump's threat on social media, Vance said negotiations continued past 1:00 AM, laying a "very good foundation" for a final deal within 60 days.

Vance declared that the two sides have established a "very good foundation" for a permanent settlement within a 60-day negotiating window, as he outlines the following four significant breakthroughs and systemic milestones achieved during the initial round of talks.

• Return of IAEA Nuclear Inspectors: In what Vance called a "major milestone" and the first step toward permanent denuclearization, Iran formally agreed to invite International Atomic Energy Agency (IAEA) inspectors back to its nuclear sites. Inspections could resume immediately to identify and monitor enriched materials.

• The "Kushner Plan" for Unfrozen Assets: Addressing Iran’s core demand to unfreeze billions in foreign assets, U.S. negotiator Jared Kushner (working alongside Qatari officials) proposed a strict conditional mechanism. Under this framework, released funds cannot be used to fund terrorism; instead, they will be legally restricted to purchasing U.S. agricultural exports—specifically soybeans, wheat, and corn—to directly benefit the Iranian civilian population.

• Securing the Strait of Hormuz: De-escalation mechanisms were locked in to ensure that the vital maritime trade route remains open to international shipping, rolling back global economic shockwaves caused by its earlier closure.

• Establishment of a 60-Day Technical Roadmap & Deconfliction: The nations agreed to form a High-Level Committee for political oversight and a technical "deconfliction cell." This framework sets a firm 60-day timeline (extending to August 16) to finalize a durable treaty, handle the termination of military operations in Lebanon, and iron out the fine details of sanctions relief.

Allegations that Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani snubbed Vance by greeting Pakistan's Prime Minister Shehbaz Sharif but ignoring the Vice President were dismissed by U.S. officials as "complete nonsense."

The brief footage captured Prime Minister Al Thani and Iranian Foreign Minister Abbas Araghchi entering a room and warmly embracing Pakistani Prime Minister Shehbaz Sharif, while completely bypassing Vance, who was standing toward the back of the room. No joint four-way photo-op was held, adding fuel to the social media narrative.

Officials including Vance and Al Thani clarified that the interaction was impromptu and that the delegations had already spent hours together, negating the need for a staged re-greeting.

US Temporarily Lifts Sanctions On Iran's Oil Sales Amid Peace Talks

The U.S. Department of the Treasury issued a temporary 60-day general license on Monday, authorizing the production, delivery, sale, and import of Iranian crude oil, petroleum products, and petrochemicals. This waiver, effective until 12:01 a.m. EDT on August 21, 2026, is part of an interim agreement reached during talks in Switzerland.

Treasury Secretary Scott Bessent announced the decision on X saying: "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. As part of the framework, Treasury has issued a temporary 60-day general license authorizing the production, delivery, and sale of Iranian oil."

The license also permits U.S. dollar-denominated payments to Iran for these transactions and covers essential support services like maritime transport, insurance, and financial processing. However, the exemptions do not extend to North Korea, Cuba, or Crimea, which remain under strict sanctions.

The waiver fulfills a pledge in a memorandum of understanding signed the previous week between Washington and Tehran, following mediation by Qatar and Pakistan at the "Lake Lucerne Summit" in Buergenstock, Switzerland.

In exchange for sanctions relief, Iran agreed to ensure free transit through the Strait of Hormuz and allow IAEA inspectors back into the country.

Prior to the waiver, Iranian oil exports had cratered from 1.5 million barrels per day to roughly 260,000 barrels per day due to a U.S. naval blockade; the announcement contributed to a drop in global oil prices.

This marks a significant shift, as the U.S. has not meaningfully imported Iranian oil since sanctions were first imposed following the 1979 revolution.

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Direct high-level talks between the U.S. and Iran resumed on Sunday, at Bürgenstock resort near Lucerne, Switzerland, focusing on implementing a 60-day framework to end hostilities and address nuclear ambitions. Led by U.S. Vice President JD Vance and Iranian Parliament Speaker Mohammad Bagher Ghalibaf, the negotiations aim to finalize a peace deal following an initial memorandum of understanding signed earlier in the week by Presidents Donald Trump and Masoud Pezeshkian.

Vance, accompanied by envoys Steve Witkoff and Jared Kushner, sought to de-escalate tensions, telling reporters that "great progress" had been made and urging both sides to "turn over a new leaf" to transform relations. He characterized the violence in Lebanon as "messy" but manageable, emphasizing the goal of extending the interim ceasefire and addressing technical details of the nuclear agreement.

Key negotiation pillars center on three critical issues where compliance remains disputed. The parties are working to enforce a ceasefire in Lebanon between Israel and Hezbollah, though recent Israeli air strikes and Hezbollah rocket attacks have threatened the stability of the agreement.

Discussions also address the Strait of Hormuz, with Iran claiming to have closed the waterway in response to "bad faith" while U.S. tracking data indicates oil traffic continues to flow with over 55 merchant ships transiting recently. The third major component involves Iran's nuclear program, where the U.S. seeks commitments to curb enrichment and allow inspections in exchange for lifting sanctions and providing a $300 billion reconstruction plan.

Roughly 90 minutes into face-to-face talks, President Donald Trump upended the room from afar via social media and a blunt 20-minute phone interview with Fox News.

On social media, Trump warned: "Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble. If they don't, we'll hit Iran very hard again, just like we did last week, only harder!!!"

Addressing Iran's threats to close the Strait of Hormuz, Trump told Fox News the U.S. would forcefully intervene. "We may take over the strait, if we have to. If they don't make a deal, we'll collect tolls," he said. In an extraordinary escalation, the president also appeared to threaten the personal safety of the Iranian delegation currently in Switzerland. "You close it [the strait] and you won't have a country. You won't even make it back to your fucking country," he claimed to have told the Iraninans during a phone call.

Furious over what they deemed "bullying" and an explicit violation of the non-aggression clauses in the preliminary MoU, the Iranian delegation formally protested to the Qatari mediators and threatened  to walked out of the direct talks.

Ghalibaf fired back on X, stating, "Our armed forces are prepared to respond to them in a different manner. They may keep talking, it is we who act." State media reported the talks had entered a "difficult phase," though mediators scrambled behind the scenes to keep both sides engaged through proxy channels late into the night.

After about 18 hours of talks, Iran's Foreign Minister and member of the senior negotiating team, Seyed Abbas Araghchi said major progress was made. "Tireless Pakistani and Qatari mediation has delivered major progress to end Lebanon War," he wrote on X. "Oil and petrochem exports are waived, blockade lifted, some frozen assets released, and major reconstruction & development plan launched for Iran. 1st real test: Lebanon deconfliction cell."

In a joint statement at the end of the talks, the mediators -- Qatar and Pakistan -- said "encouraging progress has been made" during the 18 hours of negotiations.

The mediators said the U.S. and Iran agreed to establish a High Level Committee, which will provide political oversight to the negotiation in addition to working groups focused on nuclear, sanctions, and a monitoring and dispute resolution group. Qatar and Pakistan said the U.S. and Iran agreed on 'a roadmap" for reaching a final deal within 60 days.