U.S. and Iran Begin 60-Day Countdown to Permanent Agreement; Key Issues Unresolved

U.S. Vice President JD Vance announced on Thursday that a 60-day countdown toward a permanent agreement between the United States and Iran has begun, following the signing of a memorandum of understanding (MoU) by President Donald Trump in France. The countdown, which commenced on Thursday in Iran time, is set to expire on August 17, 2026. Technical negotiations on a final deal are expected to start this weekend.

Vance, who said he is "certainly planning" to lead the U.S. negotiation team to Switzerland for in-person talks, emphasized that a permanent agreement must ensure the Strait of Hormuz remains a secure and free global waterway. "We believe international waterways should be free of tolls," Vance stated, adding that the MoU "contemplates that the Omanis, the Iranians and the Gulf Coast coalition together will figure out a proper security framework for the straits in the future." He stressed that the waterway should never again be used as a choke point for the global economy.

In a significant step, the U.S. military has lifted its naval blockade on Iranian ports, allowing more than a dozen ships to transit the strait to Iranian ports. U.S. Central Command confirmed that U.S. forces have started carrying out provisions of the MoU, while warships remain in the general area to ensure compliance. Vance also noted that more than 12.5 million barrels of oil passed through the waterway on Wednesday night, signaling a resumption of normal traffic.

The release of frozen Iranian assets remains one of the most contentious unresolved issues. The 14-point MoU pledges to "make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran," but negotiators have yet to determine the amount or the mechanisms for release. Vance told reporters, "The amount of money, I honestly don't know. I've heard numbers north of 100 billion dollars. I've actually heard numbers north of 200 billion dollars." He said Washington and Tehran must agree on the procedures during negotiations.

Vance also defended the Trump administration's softened stance on Iran's ballistic missiles, claiming it was impossible to tell any country they are not allowed to maintain self-defense capacity. He stated that Iran's missile capabilities have been "substantially degraded," with the U.S. destroying a substantial number of ballistic missiles and launchers during the conflict. Meanwhile, the MoU calls for "the immediate and permanent termination of military operations on all fronts, including in Lebanon," but Israel has indicated it does not intend to withdraw its forces from Lebanon, drawing an unusual blunt rebuke from Vance.