US-Iran deal live updates: Trump says ‘oil tankers are starting to move’ through Strait of Hormuz

“The principle of sanctions is that we need real change on the ground before we can think about lifting them. Sanctions are in place to change behaviour. So if behaviour is changing credibly and verifiably, then you can lift sanctions”, European Commission President Ursula von der Leyen said in Evian, France, ahead of G7 summit.

In a potentially important development, the E4 nations — United Kingdom, France, Germany and Italy — indicated they are prepared to consider lifting sanctions on Iran if Tehran takes meaningful steps regarding its nuclear programme.

Trump wrote on Truth Social: “Ships are starting to move, many loaded up with Oil, out of the Strait of Hormuz. They are going along the Southern “Highway,” which is totally safe, secure, and pristine. There are other areas of travel, also!!!”

A major challenge is the future of Iran’s nuclear programme.

The agreement reportedly provides a 60-day window for negotiators to address:

-Iran’s stockpile of highly enriched uranium.

-Limits on future nuclear activities.

-Inspection and verification mechanisms.

-Potential sanctions relief.

The issue has long been a source of tension between Tehran and Western governments.

One of the biggest threats to the agreement remains the ongoing conflict between Israel and Hezbollah in Lebanon.

Iran has repeatedly insisted that any comprehensive settlement must include an end to fighting in Lebanon.

However, Israeli Defense Minister Israel Katz said Israel would not withdraw from territory it currently controls and plans to maintain military positions in Lebanon, Syria and Gaza indefinitely.

According to Katz, the deployments are necessary to protect Israel’s borders and settlements.

Markets reacted positively to news of the agreement.

Brent crude futures fell 5.1% to $82.86 per barrel, while US West Texas Intermediate (WTI) crude dropped 5.8% to $79.98 per barrel.

Both benchmarks touched their lowest levels since March as investors anticipated reduced geopolitical risks and the eventual restoration of normal shipping traffic through the Strait of Hormuz.

The agreement, announced on Monday, is expected to be formally signed in Geneva on Friday following mediation efforts by Pakistan.

While full details have not been released, the understanding is expected to include:

An extension of the current US-Iran ceasefire.

Reopening of the Strait of Hormuz to commercial shipping.

An end to the US naval blockade of Iranian ports.

A 60-day negotiation period to address broader issues, including Iran’s nuclear programme.

Iranian Deputy Foreign Minister Kazem Gharibabadi said Tehran would not begin implementing the agreement until it is formally signed.

Preparatory meetings between US and Iranian officials are expected to take place in Doha before the signing ceremony.

Despite the breakthrough, Vance cautioned that many aspects of the agreement remain unresolved and will require extensive discussions.

“That’s the sort of thing that we’re going to figure out in these technical negotiations,” he told CNBC, referring to arrangements surrounding the Strait of Hormuz.

He stressed that negotiators from both sides will need to work through several complex issues during the coming weeks.

“There are a lot of very important details to figure out that we’re actually going to sit at the table and discuss together and figure out a path forward on these details,” Vance said.

Vance said the agreement is built around two central objectives: reopening the Strait of Hormuz and securing a long-term commitment from Iran never to develop a nuclear weapon.

The Strait of Hormuz, a critical route for global oil and gas shipments, has been at the center of recent tensions, disrupting energy markets and raising concerns about global supplies.

According to Vance, the administration expects the waterway to remain open well beyond the initial 60-day negotiation period.

“Our expectation is that the strait is going to be opened in a toll-free way for the long term,” he said.

US Vice President JD Vance said while a preliminary agreement between the United States and Iran marks a major diplomatic breakthrough, significant details still need to be negotiated before a lasting deal can be finalized.

Speaking on CNBC, Vance expressed confidence that Washington is entering the next phase of talks from a position of strength.

“We feel quite confident that we’re in a strong position,” Vance said, adding that the United States has “all the cards” as negotiations continue.

According to Vance, the agreement centers on two key objectives: reopening the Strait of Hormuz and securing a long-term commitment from Iran not to develop a nuclear weapon.

“Our expectation is that the strait is going to be opened in a toll-free way for the long term,” Vance said.

“That’s the sort of thing that we’re going to figure out in these technical negotiations,” he added.

One of the biggest threats to the agreement remains the ongoing conflict between Israel and Hezbollah in Lebanon.

Iran has repeatedly insisted that any comprehensive peace arrangement must include an end to fighting in Lebanon.

However, Israeli Defense Minister Israel Katz said Israel would not withdraw from territories it currently controls in Lebanon and would continue military operations to safeguard its security interests.

Katz also said Israeli forces would remain in security zones across Lebanon, Syria and Gaza indefinitely.

A spokesman for Prime Minister Benjamin Netanyahu’s office said Israel is not a party to the US-Iran agreement and will continue acting against threats posed by Hezbollah and other hostile groups.