US lifts oil sanctions against Iran, oil prices continue to decline

Anh Vũ |

The diplomatic breakthrough between the US and Iran in Switzerland opens up opportunities to end regional conflict and cool down the global energy market.

On June 23, the US waived sanctions against Iran for 60 days from June 22, after the first round of negotiations within the framework of the preliminary peace agreement. Officials also noted that the fighting situation in Lebanon has eased significantly according to the agreement aimed at ending the regional conflict.

The US Treasury Department announced exemptions from sanctions until August 21, allowing Tehran to sell oil and related products, and receive payments for these transactions. This is the first step in many steps planned under the agreement to provide economic support for Iran. The flow of oil tankers through the Strait of Hormuz began to recover and oil prices continued to fall, ending the session below 3% after Vice President J.D. Vance announced progress in negotiations.

The two sides agreed on a roadmap towards a permanent agreement within 60 days at the Buergenstock resort in Switzerland with the mediation of Pakistan and Qatar. The two sides also agreed on a mechanism to end the fighting in Lebanon between Israel and Hezbollah, and established a communication line to ensure the safety of commercial ships through the Strait of Hormuz.

Mr. Vance said Tehran has agreed to allow nuclear inspectors to enter Iran and establish a mechanism to handle frozen assets abroad. "We have laid a very good foundation for a successful final agreement," he told reporters. However, Iranian Foreign Ministry spokesman Esmaeil Baghaei affirmed to IRNA news agency that Iran has not discussed the nuclear issue and has not made any new commitments.

President Trump wrote on the social network Truth Social that Iran would agree to allow weapons inspections to ensure "nuclear integrity", and warned: "If Iran does not comply with the agreement or does not behave properly, I will do what is necessary.

Iranian Foreign Minister Abbas Araqchi said Tehran has ensured immunity for oil and petrochemical exports, released part of frozen assets abroad and launched a plan to rebuild and develop Iran.

Mr. Vance said that White House Special Envoy Jared Kushner has proposed a mechanism under which the US and Qatar will control Iran's money when it is released, and this money will only be used to buy corn, soybeans and wheat from the US. However, Governor of the Central Bank of Iran Abdolnaser Hemmati denied that commitment, affirming that at least part of the released assets could be used to buy other goods not subject to sanctions.

In Lebanon, the preliminary peace agreement called for the end of the entire conflict, including the area that Israel entered since March after Hezbollah opened fire across the border. Israel did not participate in the peace agreement and declared that it would not withdraw troops from Lebanon, but agreed to a new ceasefire.

Mr. Hassan Wazni, director of a hospital in the city of Nabatieh, which was heavily bombed, told Reuters that these are the first two quiet days since the war broke out. More than one million Lebanese people have had to leave their homes due to the war, although some have begun to return.

Anh Vũ
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