Vance says Iran sanctions can be lifted without Congress in 14-point deal

The Trump administration can suspend Iran sanctions through executive action without congressional approval, Vice President JD Vance said Thursday, clearing a hurdle for the 14-point interim peace deal signed this week.

The White House can temporarily lift sanctions on Iran without waiting for Capitol Hill approval, Vice President JD Vance said Thursday, removing a potential obstacle to the 14-point interim peace deal signed by President Donald Trump and Iranian President Masoud Pezeshkian.

Pakistan Prime Minister Shehbaz Sharif, who mediated the agreement, said the deal "shall enter into force with immediate effect" and confirmed the Strait of Hormuz would reopen as a first step.

The interim accord, signed Wednesday at the Palace of Versailles after the G7 summit, gives both sides 60 days to negotiate a permanent agreement. Under its terms, Iran will dilute its enriched uranium stocks under IAEA supervision in exchange for sweeping sanctions relief and a $300 billion reconstruction fund backed by regional nations. The war that began Feb. 28 has killed more than 7,000 people across the Middle East, including 13 U.S. service members.

The deal marks a dramatic reversal for Trump, who launched the military campaign in February vowing to destroy Iran's missile industry and end its nuclear program. Iran retains its ballistic missile capabilities, its stockpile of highly enriched uranium remains intact, and its theocratic government stays in power — while securing billions in sanctions relief.

Oil Markets Face Supply Shock as Strait of Hormuz Reopens

The reopening of the Strait of Hormuz — which handles about 21 percent of global oil trade — could add significant supply to crude markets, potentially pushing Brent prices lower. The waterway was effectively shut down after Iran's Feb. 28 counterattack, with the U.S. responding by blocking shipping to and from Iranian ports. The last time a major oil chokepoint was disrupted at this scale, during the 2019 attacks on Saudi Aramco's Abqaiq facility, Brent surged 15 percent in a single session before retreating over subsequent weeks.

Iranian oil exports, which had been crippled by U.S. sanctions, could resume under the deal's immediate waiver of oil sanctions. The International Energy Agency has estimated that Iran holds about 12 percent of OPEC's total production capacity, and a return of even a portion of that supply could pressure prices at a time when global demand growth is slowing.

Congressional Pushback and Political Fallout

The administration's decision to bypass Congress has drawn sharp criticism from Trump's own party. Senator Bill Cassidy, a Republican, called the deal "the worst foreign policy blunder in decades," arguing that "Iran's nuclear ambitions were not curbed, and they have learned that threatening the Strait of Hormuz works."

The last time a U.S. administration reached a major nuclear accord with Iran — the 2015 Joint Comprehensive Plan of Action under President Barack Obama — it faced intense congressional opposition, and Trump withdrew from it in 2018. The current deal goes further than the JCPOA by including a $300 billion reconstruction fund and immediate sanctions relief, but it lacks the verification mechanisms and sunset clauses that defined the earlier agreement.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf described the deal as a U.S. "failure" on state television, while Hezbollah leader Naim Qassem called it a "great victory" for Tehran. Technical talks are set to begin Friday in Switzerland, with a formal ceremony scheduled for the same day.

This article is for informational purposes only and does not constitute investment advice.