US announces the temporary easing of oil sanctions for 60 days after Iran agrees to allow international nuclear inspections.

Iran’s top negotiator, Mohammad Bagher Ghalibaf, says an agreement has been reached with the United States to release $12bn in frozen Iranian funds following talks in Switzerland.

The US eased sanctions on Iranian oil for 60 days after Tehran committed to allowing international nuclear inspectors to return to the country during negotiations to end the US-Israel war on Iran.

Israel and Lebanon are scheduled to hold talks in the US as a ceasefire appears to be holding in Lebanon.

So what’s the latest as the conflict enters its 116th day?

Diplomacy

• Iranian Deputy Foreign Minister Kazem Gharibabadi says technical talks with the US have concluded and the next phase “will take place under the supervision of the high-level committee” that includes Ghalibaf, Foreign Minister Abbas Araghchi and US Vice President JD Vance.
• Ghalibaf has hailed “good achievements” in the US-Iran talks and confirmed the release of two tranches of $6bn in frozen funds.
• The US Treasury Department has waived sanctions on the sale of Iranian crude ⁠oil, petrochemicals ⁠and petroleum products until ⁠August 21.
• Omani Foreign Minister Badr Albusaidi reaffirms a commitment for “toll-free passage” in the Strait of Hormuz after talks with Iranian diplomats in Muscat.
• Henry Ensher, a former US ambassador and deputy assistant secretary of state, says the release of frozen Iranian assets and the resumption of maritime traffic in the Strait of Hormuz suggest that Washington and Tehran are both “getting what they want”. “Both sides are very interested to show that, somehow, they’ve gotten the upper hand or at least that they’re not being taken advantage of,” Ensher tells Al Jazeera.

In Iran

• Iranian President Masoud Pezeshkian has called for a “full commitment to agreed obligations”. “The effectiveness of the talks depends on full commitment to the agreed obligations and their precise implementation,” Pezeshkian says.
• Ghalibaf has defended the decision to hold talks with the US, saying Iranian delegates went to Switzerland to end the bloodshed in Lebanon.
• Central Bank of Iran Governor Abdolnaser Hemmati has denied comments by US President Donald Trump that released Iranian funds would be used to buy US farm products. Hemmati tells the Tasnim News Agency that Iran has “no obligation to buy” agricultural products from the US. He says the agreement between the US and Iran on the matter says the first $6bn can be used to buy “basic goods and medicine”.

In the US

• Trump says Iran “will agree” to have weapons inspections and any released Iranian assets will be used to buy US produce.
• Democrats on the Foreign Affairs Committee of the US House of Representatives have accused Trump of granting Iran sanctions relief before making progress on key issues under negotiation, including Tehran’s nuclear programme. “Trump officials repeatedly said sanctions relief would be tied to Iran addressing its nuclear program and terrorist proxies. Neither has been addressed, but the regime has been gifted sweeping sanctions relief it has dreamed of for decades,” they say in a post on X.

In Lebanon

• A ceasefire between Israel and Hezbollah has largely held, even as fear of renewed hostilities has kept displaced people from returning home.
• The United Nations said Sunday marked the first time its peacekeepers have detected no air attacks in Lebanon since March 2, the day the war between Israel and Hezbollah escalated and two days after the US-Israel war on Iran began.
• Mahmoud Qamati, deputy head of Hezbollah’s political council, has warned that the Lebanese group will respond to any violation of the ceasefire by Israel, according to Iran’s Press TV. “Hezbollah remains fully alert with its finger on the trigger, ready to confront any violation by the Israeli regime,” Qamati is quoted as saying.
• Israeli Prime Minister Benjamin Netanyahu, Defence Minister Israel Katz and Chief of the General Staff Eyal Zamir say Israeli troops will continue to occupy southern Lebanon.

• The Israeli military will continue to “act with determination in order to neutralize threats against our soldiers and our citizens” and to demolish infrastructure belonging to Hezbollah, they say in a statement.

• The Israeli military will also continue to “maintain the security zone in southern Lebanon”, they say, referring to the land Israel occupies there, razing buildings and forcibly displacing one million people.
• Israel and Lebanon are to start a new round of direct talks in Washington, DC, on Tuesday.