US grants temporary Iran oil sanctions waiver as Lebanon truce holds

The United States has temporarily eased sanctions on Iranian oil sales as talks with Tehran advance, according to Al Jazeera and US Treasury Department measures cited in its reporting. Iranian officials said the negotiations also cleared the way for the release of $12bn in frozen Iranian assets, a move that drew criticism from Democrats in Washington.

Al Jazeera reported that the sanctions waiver covers Iranian crude oil, petrochemicals and petroleum products until August 21. The measure followed what the outlet described as Iran’s commitment during negotiations to allow international nuclear inspectors to return to the country.

Mohammad Bagher Ghalibaf, Iran’s top negotiator, said after talks in Switzerland that Washington and Tehran had reached agreement on releasing the frozen money, according to Al Jazeera. He said the funds would come in two $6bn installments and described the talks as producing “good achievements.”

Talks shift to a higher-level committee

Iranian Deputy Foreign Minister Kazem Gharibabadi said technical discussions with the US had ended, Al Jazeera reported. He said the next stage would be overseen by a high-level committee including Ghalibaf, Iranian Foreign Minister Abbas Araghchi and US Vice President JD Vance.

Iranian President Masoud Pezeshkian called for all sides to carry out their commitments. Al Jazeera quoted him as saying the success of the talks depended on the obligations being implemented fully and accurately.

Ghalibaf defended Iran’s decision to negotiate with the United States, saying Iranian representatives had gone to Switzerland to stop bloodshed in Lebanon, according to Al Jazeera. Omani Foreign Minister Badr Albusaidi also said after meetings with Iranian diplomats in Muscat that there was a commitment to “toll-free passage” through the Strait of Hormuz.

Henry Ensher, a former US ambassador and deputy assistant secretary of state, told Al Jazeera that the release of Iranian funds and the reopening of maritime traffic in the Strait of Hormuz suggested both Washington and Tehran were getting outcomes they wanted. He said both sides wanted to show they had gained leverage or avoided being exploited.

Dispute over how funds will be used

US President Donald Trump said Iran would accept weapons inspections and that released assets would be spent on US produce, according to Al Jazeera. Abdolnaser Hemmati, governor of Iran’s central bank, rejected that account in comments to Tasnim News Agency, saying Iran had no duty to buy US agricultural goods.

Hemmati said the agreement allowed the first $6bn to be used for basic goods and medicine, according to Al Jazeera. Democrats on the Foreign Affairs Committee of the US House of Representatives accused Trump on X of giving Tehran sanctions relief before progress had been made on Iran’s nuclear programme or armed allies.

Lebanon ceasefire holds ahead of Washington talks

In Lebanon, a ceasefire between Israel and Hezbollah has largely held, though Al Jazeera reported that displaced residents remain afraid to return home. The United Nations said Sunday was the first day since March 2 that its peacekeepers detected no air attacks in Lebanon.

Mahmoud Qamati, deputy head of Hezbollah’s political council, warned that the group would respond to Israeli violations of the ceasefire, according to Iran’s Press TV. Israeli Prime Minister Benjamin Netanyahu, Defence Minister Israel Katz and military chief Eyal Zamir said Israeli troops would remain in southern Lebanon, Al Jazeera reported.

The Israeli officials said the military would keep acting against threats to soldiers and civilians and would continue destroying Hezbollah infrastructure, according to Al Jazeera. Israel and Lebanon are due to begin a new round of direct talks in Washington, DC, on Tuesday.

This story draws on original reporting from Al Jazeera.