U.S. Vice President JD Vance said Monday that his extensive discussions with senior Iranian officials in Switzerland had created a "good foundation for a successful final deal" aimed at permanently ending the war that began in late February between Iran and the U.S.-Israel alliance.
Vance and other U.S. officials said progress had been made on several issues, including establishing mechanisms to keep the Strait of Hormuz, a crucial route for global energy shipments, open and addressing the conflict between Israel and Iran-backed Hezbollah fighters in southern Lebanon, where a ceasefire appeared to be holding.
The interim agreement signed last week by U.S. and Iranian leaders ended active fighting and established a 60-day period for negotiations on key issues, including the future of Iran's nuclear programme. Western countries have long expressed concerns that Tehran could use the programme for military purposes, an allegation Iran denies.
Vance left Switzerland while technical teams continued negotiations. Meanwhile, U.S. President Donald Trump highlighted efforts to reopen the Strait of Hormuz and boost oil supplies, saying the key to a lasting resolution was Iran's respect for the United States.
"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 from the Oval Office.
Iran effectively shut down the Strait of Hormuz after U.S. and Israeli attacks on Feb. 28, triggering sharp increases in fuel prices worldwide. Under the interim agreement, the waterway is expected to reopen. Dozens of vessels passed through the strait over the weekend, although the main shipping channel remains mined and closed.
Iranian parliamentary speaker Mohammad Bagher Qalibaf, who led Iran's negotiating team, said Iran would continue managing the strait in accordance with international law.
"Hopefully we can activate the strait again, in terms of passage, and bring prosperity back to regional and global economy," Qalibaf told Iranian state media while returning from Switzerland.
Qalibaf and Foreign Minister Abbas Araghchi later travelled to Oman, where they met Foreign Minister Badr al Busaidi to discuss ongoing peace efforts and maritime security in the Strait of Hormuz.
As part of the interim agreement, the U.S. Treasury on Monday issued a 60-day waiver allowing certain transactions involving Iranian oil. The move could permit limited Iranian oil imports into the United States, something that has not occurred on a significant scale since the 1990s.
Shipping activity through the Strait of Hormuz continued to recover. Data from analytics firm Kpler showed 71 confirmed vessel transits during the weekend, including 35 crossings on Saturday alone. Before the conflict, the strait typically handled between 100 and 130 vessels daily.
Many ships are still avoiding the central shipping lane because of mines, instead using northern routes through Iranian waters or southern routes through Omani waters.
Oil markets reacted positively to the developments. Brent crude fell 3.2% to $77.52 per barrel, closer to pre-war levels, while U.S. benchmark crude dropped 2.6% to $73.86 per barrel.
Trump's influence loomed over negotiations
Although Trump did not attend the talks, known as the "Lake Lucerne Summit," his influence remained significant throughout the discussions. Negotiations began Sunday and continued into Monday, despite occasional tensions triggered by comments made by Trump from Washington.
"We haven't built the house, but we've laid a successful foundation to get to a good place for the American people," Vance told reporters.
The vice president also suggested the U.S. could unfreeze Iranian assets to finance purchases of American agricultural products, including soybeans, corn and wheat. He said the proposal was developed by Jared Kushner, Trump's son-in-law and a key U.S. negotiator, in coordination with Qatari officials.
According to Vance, Qatar would oversee the process, and Iranian funds released under sanctions relief would be used to buy American products for the benefit of the Iranian people.
Iran has not publicly responded to the proposal. Tehran has long sought access to billions of dollars in frozen assets blocked by sanctions, banking restrictions and legal disputes imposed by the United States and other countries.
Progress reported on Lebanon issue
Iranian officials also reported progress on efforts to halt fighting between Israel and Hezbollah in Lebanon, describing the issue as a crucial element of any broader peace agreement.
Foreign Minister Araghchi wrote on X that mediators had achieved "major progress" toward ending the conflict in Lebanon. However, he stressed that the true test would be whether the proposed mechanism succeeds in preventing further clashes between Israel and Hezbollah.
Neither Israel nor Hezbollah is formally part of the U.S.-Iran agreement.
Still, the ceasefire between the two sides appeared to be holding as of Monday evening.
"We have not detected trajectories from either side since yesterday," said Tilak Pokharel, spokesperson for the United Nations peacekeeping mission in southern Lebanon, known as UNIFIL.
He noted that Israeli military movements and airspace violations continued, but Hezbollah has not claimed any attacks against Israeli forces since Saturday.
The current lull marks the longest pause in fighting since the latest Israel-Hezbollah conflict erupted on March 2.