US Vice President JD Vance said his lengthy talks with senior Iranian officials in Switzerland created a “good foundation for a successful final deal” as they seek a permanent end to the war that the US and Israel started in late February.
Vance and US officials claimed progress on multiple fronts, including the establishment of “mechanisms” to ensure the Strait of Hormuz, a vital waterway for global energy shipments, stays open and to address fighting between Israel and Iranian-backed Hezbollah militants in southern Lebanon, where a ceasefire appeared to be holding.
The interim deal to end the fighting in Iran, signed last week by the presidents of the US and Iran, Donald Trump and Masoud Pezeshkian, sets a 60-day period for negotiations on key issues, including the future of Tehran’s nuclear programme amid concerns that Tehran wants to use it for military purposes, a claim the country denies.
Vance departed Switzerland as technical teams were still negotiating, and US President Donald Trump talked up the efforts to keep the strait open to create “an oil gusher" as he stressed that the key to resolving the war was “respect” from Iran.
"As long as they respect us, I don’t want to use the word fear because that’s an inappropriate word, but as long as they respect us, we’re not going to have any trouble,” Trump said addressing the ongoing negotiations from the Oval Office.
Iran effectively closed the strait after the US and Israel began their attacks on 28 February, causing fuel prices to skyrocket far beyond the region.
The interim agreement to end the war was supposed to reopen the strategic channel, where dozens of ships passed through it over the weekend, even though the main route is still mined and closed.
Iran’s lead negotiator, parliamentary speaker Mohammad Bagher Ghalibaf, insisted on Monday that the Strait of Hormuz will be managed by Tehran, but following international laws.
“Hopefully we can activate the strait again, in terms of passage, and bring prosperity back to regional and global economy," Ghalibaf told Iranian state media on the plane on his way back from Switzerland.
Ghalibaf and Foreign Minister Abbas Araghchi, arrived on Monday night in Oman where they met with the country’s Foreign Minister Badr al-Busaidi to discuss the peace efforts and ensure safe navigation in the Strait of Hormuz.
The US Treasury issued a 60-day license on Monday waiving sanctions on Iranian oil as part of the interim agreement. Notably, the license allows Iranian oil to be imported into the US, which has not imported significant amounts of Iranian oil since the 1990s.
Tanker traffic continued to pick up through the Strait of Hormuz. According to data and analytics firm Kpler, there were 71 confirmed transits over the weekend, with a peak of 35 crossings on Saturday. Before the war, 100 to 130 vessels passed through the strait each day.
In the markets, Brent crude oil fell 3.2% to $77.52 (€67.85) per barrel, closer to its roughly $70 (€61.27) price from before the war. Benchmark US crude oil fell 2.6% to $73.86 (€64.65) per barrel. It’s a dramatic drop from prices which at the height of the war peaked at above $120 (€105) per barrel during the war.
