US issues 60-day oil licence for Iran after breakthrough in Switzerland talks

The United States has issued a 60-day general licence allowing limited production, sale and export of Iranian petroleum and petrochemical products, marking a major policy shift following diplomatic progress in high-level talks held in Burgenstock, Switzerland.

The US Treasury Department said the decision was taken under a temporary framework agreed during multilateral negotiations involving the United States, Iran, Pakistan and Qatar. The step is aimed at stabilising global energy markets and supporting ongoing efforts to sustain a fragile regional ceasefire and reduce tensions in the Middle East.

According to officials, the licence provides conditional relief from sanctions for a limited period while negotiations continue on a broader roadmap covering Iran’s nuclear programme, sanctions mechanisms, and maritime security in key shipping routes, including the Strait of Hormuz.

Diplomatic sources said the talks in Switzerland have entered a technical phase after what was described as “encouraging progress” in earlier rounds. US Vice President JD Vance and senior American envoys held meetings with Iranian representatives, with Pakistan and Qatar acting as key facilitators in the process.

Both sides reportedly discussed steps for a 60-day interim ceasefire, gradual easing of economic restrictions, and a mechanism to ensure continued international monitoring of Iran’s nuclear activities. Iranian officials have also indicated willingness to cooperate on inspection arrangements and financial dispute mechanisms under the evolving framework.

Read More: JD Vance says Tehran agrees to restore nuclear inspections

The development comes after weeks of heightened tensions that disrupted maritime traffic and global energy markets. Following signs of diplomatic progress, oil prices eased as concerns over supply shortages reduced.

Negotiators are expected to continue technical-level discussions over the coming days in an effort to convert the interim understanding into a long-term agreement aimed at regional stability and energy security.