Vance secures Iran nuclear access in 60-day deal, oil slides

Iran agreed to allow UN nuclear inspectors back for the first time since US and Israeli strikes destroyed its enrichment sites last year.

Vice President JD Vance said Iran agreed to readmit International Atomic Energy Agency inspectors as soon as this week, a breakthrough that pushed crude prices lower on bets the 60-day framework will keep the Strait of Hormuz open.

"The invite to IAEA inspectors is a major milestone and the first step in permanently ending a nuclear weapons program in Iran," Vance told reporters Monday at the Bürgenstock resort in Switzerland after talks that stretched past 1 a.m.

Brent crude edged lower on the optimism, while gold pared gains as the risk premium narrowed. The US Treasury issued a 60-day license waiving sanctions on Iranian oil through Aug. 21, Treasury Secretary Scott Bessent said on X, authorizing production, delivery and sale of Iranian crude.

The Strait of Hormuz handles about a fifth of global oil trade, and Iran's closure of the waterway last week sent shipping costs surging. Negotiators agreed on a deconfliction mechanism to keep the strait open, but the final deal — covering the fate of Iran's near-weapons-grade enriched uranium — must be completed within 60 days or the framework collapses.

The breakthrough came after a rocky start. President Donald Trump threatened on social media to "hit Iran very hard again" after Iranian officials made what Vance called "trash talk" about the strait closure. The Iranian delegation paused direct talks Sunday, though engagement through mediators continued. "They did threaten to walk out," Vance said. "They did not walk out."

The last time Iran blocked IAEA access was after the June 2025 strikes by the US and Israel that destroyed facilities at Natanz, Fordow and Isfahan. IAEA Director General Rafael Grossi, who attended the talks, has said roughly half of Iran's enriched uranium stockpile likely lies in an underground tunnel network below Isfahan. Getting inspectors back would allow environmental sampling to determine whether any containers were destroyed and whether Tehran could resume enrichment.

Lebanon ceasefire mechanism tested

A separate deconfliction system brokered by Qatar and Pakistan aims to prevent a new escalation between Israel and Hezbollah, whose fighting flared in recent days and threatened to derail the broader truce. The first clause of the framework document insists on an end to the fighting in Lebanon as a precondition. A cautious calm held Monday, with no Israeli strikes reported overnight and Hezbollah announcing no attacks since Saturday — the longest lull since the latest Israel-Hezbollah war began March 2.

Iranian Foreign Minister Abbas Araghchi called the Lebanon progress "major" but said it would be the "real test" of the negotiations. Neither Israel nor Hezbollah is a signatory to the US-Iran deal.

Unfrozen funds tied to US agricultural purchases

Vance also outlined a mechanism to release billions of dollars in Iranian assets held in Qatar, with the funds earmarked to purchase US soybeans, corn and wheat. Jared Kushner, Trump's son-in-law and a lead US negotiator, developed the idea with Qatari officials, Vance said. Qatar would retain approval authority over disbursements.

"If the Iranian assets are ever unfrozen, they are going to make American farmers richer and to feed the Iranian people," Vance said. Iran has not commented on the proposal.

The framework agreement marks the first time since the 2015 Joint Comprehensive Plan of Action that the US and Iran have negotiated a comprehensive nuclear deal. That accord collapsed in 2018 after Trump withdrew, triggering sanctions that cut Iran's oil exports by more than 2 million barrels a day. The current talks unfold after direct military strikes reshaped the strategic landscape — the US and Israel bombed Iran's nuclear sites in June 2025, and the war that began in late February has already redrawn energy trade routes across the Middle East.

Technical teams remain in Switzerland for further negotiations. Vance said the framework lays "very solid foundations" for a final agreement, but acknowledged "much work still lies ahead."

This article is for informational purposes only and does not constitute investment advice.