Day 116 of Iran Conflict: US Eases Oil Sanctions, Lebanon Ceasefire Holds

On the 116th day of the US-Israel conflict targeting Iran, new diplomatic developments have seen concessions from both sides. Iran's lead negotiator, Mohammad Bagher Ghalibaf, stated that an agreement has been reached with the US to release $12 billion of frozen Iranian assets following talks in Switzerland.

Accordingly, the US has eased sanctions on Iranian oil for 60 days after Tehran committed to allowing international nuclear inspectors back into the country as part of negotiations to end the war. The US Treasury has waived sanctions on the sale of Iranian crude oil, petrochemicals, and petroleum products until August 21.

Iranian Deputy Foreign Minister Kazem Gharibabadi indicated that technical talks with the US have concluded, with the next phase to be overseen by a high-level committee involving Ghalibaf, Foreign Minister Abbas Araghchi, and US Vice President JD Vance. Ghalibaf hailed the positive achievements in the talks and confirmed the release of two tranches of frozen funds, each worth $6 billion.

Tensions in the Strait of Hormuz have also shown signs of easing. Omani Foreign Minister Badr Albusaidi reaffirmed commitments to freedom of navigation through the strait after talks with Iranian diplomats in Muscat.

Henry Ensher, a former US ambassador and assistant deputy secretary of state, assessed that the release of frozen Iranian assets and the resumption of maritime traffic in the Strait of Hormuz indicate both Washington and Tehran are getting what they want. "Both sides are very eager to show that somehow they have gained the upper hand or at least not been taken advantage of," Ensher told Al Jazeera.

In Iran, President Masoud Pezeshkian called for "full commitment to agreed obligations." He stressed that the effectiveness of the talks depends on full adherence to obligations and their precise implementation. Ghalibaf defended the decision to negotiate with the US, saying Iranian delegates went to Switzerland to end bloodshed in Lebanon.

Meanwhile, Central Bank of Iran Governor Abdolnaser Hemmati denied US President Donald Trump's claim that the released funds would be used to buy American agricultural products. Hemmati insisted Iran has "no obligation to buy" agricultural products from the US, noting the agreement stipulates the first $6 billion can be used to purchase "basic goods and medicine."

In the US, Trump declared Iran "will agree" to allow weapons inspections and that any released assets would be used to buy American agricultural products. However, Democratic lawmakers on the US House Foreign Affairs Committee criticized Trump for easing sanctions on Iran before progress on key issues, including Tehran's nuclear program.

In Lebanon, the ceasefire between Israel and Hezbollah largely remains in place, despite concerns about possible renewed fighting that has prevented displaced residents from returning home. The UN reported that Sunday marked the first time since March 2 — when the conflict between Israel and Hezbollah escalated — that peacekeeping forces detected no airstrikes in Lebanon.

Hezbollah Political Council Deputy Chief Mahmoud Qamati warned the group would respond to any Israeli ceasefire violations. "Hezbollah remains on high alert, ready to confront any violations by the Israeli regime," Qamati was quoted by Iranian media. Meanwhile, Israeli Prime Minister Benjamin Netanyahu, Defense Minister Israel Katz, and Chief of Staff Eyal Zamir declared that the Israeli military would continue its occupation of southern Lebanon while maintaining a "security zone" there.

Under the plan, Israel and Lebanon are to begin a new round of direct negotiations in Washington next Tuesday.