Oil slips as signs of progress in US-Iran talks calm markets

Iranian Foreign Minister Abbas Araghchi says Tehran has already secured significant economic benefits through the diplomatic process with Washington, highlighting sanctions-related relief measures and investment plans following talks in Switzerland.

According to Reuters, Araghchi said oil and petrochemical exports had been granted waivers, the blockade on Iran had been lifted, some frozen assets had been released and a major reconstruction and development plan had been launched for the country.

Araghchi's comments came shortly after mediators Qatar and Pakistan announced that talks had produced "encouraging progress" and established a roadmap toward a final agreement within 60 days.

Iranian Foreign Minister Abbas Araghchi says the first real test of progress made in Switzerland will be a newly established mechanism designed to prevent renewed fighting in Lebanon.

In a post on X, Araghchi praised Pakistani and Qatari mediation efforts, saying they had delivered "major progress" toward ending the Lebanon war and implementing the Iran-US memorandum of understanding.

"Tireless Pakistani and Qatari mediation has delivered major progress to end Lebanon War," he wrote, pointing to sanctions waivers for oil and petrochemical exports, the lifting of the blockade, the release of some frozen assets and a major reconstruction and development plan for Iran.

"The first real test: Lebanon deconfliction cell."

The comment appeared to refer to a provision in the joint statement issued by mediators Qatar and Pakistan following nearly 18 hours of talks in Switzerland.

According to the statement, the United States and Iran agreed to create a deconfliction cell involving the two countries and the Lebanese government, with Qatar and Pakistan facilitating the process.

The mechanism is intended to "ensure adherence to the termination of military operations in Lebanon" under the memorandum of understanding.

Mediators Qatar and Pakistan said talks between the United States and Iran in Switzerland concluded in a "positive and constructive atmosphere," offering the strongest indication yet that negotiators were able to make progress despite a tense start.

In a joint statement issued after the talks, the two countries said "encouraging progress" had been achieved and announced the creation of a mechanism for further technical discussions.

The statement follows nearly 18 hours of negotiations in Buergenstock aimed at implementing the memorandum of understanding signed by Tehran and Washington last week.

Iran's Foreign Ministry says negotiations in Switzerland have gone beyond immediate implementation disputes and included discussions on launching talks toward a final agreement between Tehran and Washington.

Foreign Ministry spokesman Esmail Baghaei said the groundwork for future negotiations was discussed during nearly 18 hours of talks involving Iran, the United States and mediators from Qatar and Pakistan.

Baghaei also announced that negotiators had agreed on a mechanism to ensure the safe passage of ships through the Strait of Hormuz, one of the most contentious issues surrounding the recent memorandum of understanding.

He said Qatar and Pakistan will issue a text outlining the general points agreed by the parties.

Baghaei also said the work of the negotiating delegations had concluded for now, but that technical teams would remain engaged to continue discussions on implementation and outstanding issues.

Iran has exported approximately 36 million barrels of crude oil since June 15, according to maritime intelligence firm TankerTrackers, underscoring the rapid return of oil shipments following the partial easing of restrictions on Iranian exports.

The firm said in a social media post that roughly another 36 million barrels remain afloat in Iranian waters, suggesting Tehran retains a substantial volume of crude ready to enter international markets if current diplomatic efforts continue moving forward.

The figures mark a dramatic turnaround from just weeks ago, when Iran's oil exports had fallen to their lowest level in at least six years amid a US naval blockade and disruptions in the Strait of Hormuz.

In May, exports were estimated at only 209,000-260,000 barrels per day, down sharply from pre-war levels.