Vance says talks with Iranian officials set 'good foundation' for a deal to end the war

The vice president departed Switzerland as technical teams were still negotiating, and President Donald Trump talked up the efforts to keep the strait open to create “an oil gusher.”

“We’re doing very well with respect to the Hormuz Strait,” Trump said from the Oval Office. “We have an open strait, and we have a country that will never have a nuclear weapon.”

Iran effectively closed the strait after the U.S. and Israel attacked on Feb. 28, causing fuel prices to skyrocket far beyond the region. The interim agreement to end the war was supposed to reopen the channel. Dozens of ships passed through it over the weekend, even though the main route is still mined and closed.

Shortly after those attacks, Hezbollah and Israel also went to war, with Hezbollah firing rockets and drones at civilian communities in northern Israel and Israel seizing large swaths of southern Lebanon. Iran has insisted that addressing the fighting in Lebanon is a critical component of any deal to end the wider conflict.

Iran noted “major progress” to end the fighting in Lebanon and called that the first real test of the negotiations.

In other developments, the U.S. Treasury issued a 60-day license waiving sanctions on Iranian oil as part of the interim agreement. Notably, the license allows Iranian oil to be imported into the U.S., which has not imported significant amounts of Iranian oil since the 1990s.

Also on Monday, the State Department announced that Secretary of State Marco Rubio would travel this week to the United Arab Emirates, Kuwait and Bahrain to discuss the latest developments in Iran.

Trump was not in Switzerland but loomed large over talks

The mediation effort in Switzerland started Sunday and stretched into early Monday.

“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 after initial talks with Iran’s parliamentary speaker, Mohammad Bagher Qalibaf.

Trump did not attend what was dubbed the “Lake Lucerne Summit,” but his presence certainly loomed large. The talks were jolted by statements from Trump, who, from thousands of miles away, fired off comments that offended the Iranians.

Iranian state media said talks had paused after the “publication of an insulting message by the U.S. President.” The negotiations later continued.

Vance floats unfreezing Iranian assets to purchase US goods

The vice president suggested that the U.S. could agree to unfreeze Iranian assets for purchases of U.S. soy, corn and wheat. He said Jared Kushner, Trump's son-in-law and one of the lead U.S. negotiators, came up with the idea with officials from Qatar.

Vance said Qatar would have approval over the process, and Iranian money that would be accessible as sanctions were lifted would buy American products "for the benefit of the Iranian people.”

Iran, which has pressed for the unfreezing of billions of dollars in assets, has not commented on the idea. The assets have been frozen over years of sanctions, banking restrictions and legal disputes imposed by the U.S. and international community.

High-level talks have ended but technical talks continue

In a joint statement, mediators Pakistan and Qatar hailed what they called “encouraging progress.”

The interim deal to end the fighting in Iran, signed last week by the leaders of the U.S. and Iran, sets a 60-day period for negotiations on key issues, including the future of Tehran’s nuclear program amid concerns that Iran wants to use it for military purposes, a claim the country denies.

Vance said the technical talks, which were to continue this week, were critical. U.S. envoys Kushner and Steve Witkoff are handling many of the technical details.

More ships pass through strait

Meanwhile, more ships went 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.

Ships have been avoiding the central route to steer clear of mines, choosing instead to use the smaller northern route, which goes through Iranian waters, and the southern route, which goes through Omani waters. In the markets, U.S. oil prices dropped more than 2% in Monday afternoon trading to $74.66 a barrel.

Trump, over the weekend, made clear he was annoyed by Iran’s public commentary on the strait, which Iran’s military said it closed Saturday in response to continued fighting in Lebanon. U.S. Central Command disputed that Iran closed the strait again.

Ahead of the talks, Iranian President Masoud Pezeshkian had vowed to “never back down from the right to enrich uranium,” according to state media.

Trump on Sunday told Fox News in a phone interview that Pezeshkian should watch what he says and threatened to take over Iran, according to one of the news channel's correspondents.

Trump also posted on social media as negotiators worked: “Iran must immediately stop their highly paid PROXIES in Lebanon from causing trouble. If they don’t, we’ll hit Iran very hard again, just like we did last week, only harder!!!”

Iranians agree there was progress on their top issue

Iranian Foreign Minister Abbas Araghchi wrote on X that mediators delivered "major progress to end the Lebanon War.” But he said the first “real test” of negotiations would be whether the mechanism succeeds in halting the fighting between Israel and Hezbollah.

Neither Israel nor Hezbollah is a signatory to the U.S.-Iran deal.

But as of Monday evening in the Middle East, the ceasefire between Israel and Hezbollah appeared to be holding.

“We have not detected trajectories from either side since yesterday,” said Tilak Pokharel, a spokesperson for the U.N. peacekeeping force in southern Lebanon known as UNIFIL.

Airspace violations and Israeli military movements continued, Pokharel said.

Hezbollah has not announced any attacks on Israeli forces since Saturday.

The lull in fighting in Lebanon is the longest since the latest Israel-Hezbollah war began on March 2.

Kim and Boak reported from Washington. Associated Press reporters Abby Sewell in Beirut, David Rising in Bangkok, Fatima Hussein in Washington, Mae Anderson in New York, Jon Gambrell in Dubai, United Arab Emirates, and Melanie Lidman in Tel Aviv, Israel, contributed to this story.