Trump Signs 60-Day Ceasefire With Iran, Waiving Oil Sanctions

President Trump signed a 60-day ceasefire memorandum of understanding with Iran that directs the Treasury Department to waive sanctions on Iranian crude oil, petroleum products and derivatives, and all associated services. The MOU also provides for the unfreezing of Iranian funds and assets, the creation of a $300 billion construction fund, and the termination of all other sanctions, each step conditional on agreed-upon terms, schedules and Iran’s performance.

President Trump said Iran now has to be good and behave. He added that prior sanctions would never let Iran rebuild, that the country’s 91 million people would starve, and that when Iran behaves the United States will let the sanctions go.

President Vance stated on Thursday that the administration does not view the oil-sanctions waiver as a major concession. He said Iran had been selling oil without discount because sanctions were ineffective, that lifting the sanctions and the Strait of Hormuz blockade is a real benefit to the American people, and that selling a few million dollars’ worth of oil will not transform the Iranian economy.

Vance also said the United States can reimpose sanctions if Iran does not make the expected deal.

A senator wrote on X that Reagan is rolling over in his grave. The senator stated that before the war the strait was open, Iran was being crushed by sanctions, and 13 service members were still alive. The senator added that now 13 Americans are dead, families have paid billions at the pump, sanctions will be lifted, and the bombing has stopped, calling the outcome the worst foreign policy blunder in decades.

Clay Seigle, nonresident scholar at the Center for Strategic and International Studies, said the initial waiver should allow Iran to sell oil to more countries than just China, which had been substantially its only customer in recent years. Seigle added that China previously obtained Iranian oil at a discount and that future competition among buyers could bid up prices, allowing Iran to gain more per barrel.