Speaking in an exclusive interview with CNBC following the announcement of a US-Iran agreement to end the conflict in West Asia, Vance said the Trump administration expects the strategically important Strait of Hormuz to remain open beyond an initial 60-day implementation period.
“Our expectation is that the Strait is going to be opened in a toll-free way for the long term,” Vance said, adding that technical details would be worked out during negotiations scheduled over the next two months.
The agreement comes after months of diplomatic efforts and regional uncertainty. In a social media post, President Trump said he had authorised “the toll-free opening of the Strait of Hormuz” and the removal of the US naval blockade of Iranian ports. In a separate post, Trump said the opening of the waterway would allow oil to flow freely again “for the region and the world”.
The Strait of Hormuz is one of the world’s most important energy corridors, carrying a significant share of global crude oil and liquefied natural gas shipments. Any disruption to traffic through the waterway has historically raised concerns over energy supplies and global market stability.
Vance said the broader objective of the agreement is to encourage Iran to permanently abandon its nuclear ambitions in exchange for economic opportunities and improved relations with the United States.
“I think the Iranians fundamentally have a good choice here in front of them: whether to be a normal country or whether to be a country that continues to pursue a nuclear weapon, which they now have no capacity to do,” he said.
According to Vance, Iran has committed to disposing of its stockpile of highly enriched uranium, while discussions during the next 60 days will focus on verification mechanisms, inspections and the practical implementation of commitments made by both sides.
The vice president said the United States would consider allowing Iran greater access to the global economy if Tehran agrees to long-term monitoring of its nuclear programme.
“We are extending an open hand to the Iranians and saying, if you guys negotiate in good faith and you make that long-term commitment not to develop nuclear weapons, then we are going to make sure that your country is successful,” Vance said.
Iranian officials have also confirmed the agreement. Deputy Foreign Minister Kazem Gharibabadi said Qatari mediators held up to 15 hours of talks in Tehran on Sunday to finalise the text of what has been described as the Islamabad Memorandum of Understanding. He said discussions on a final settlement would continue over a 60-day period after verifying that the United States had implemented its commitments, including the release of frozen Iranian assets.
Vance argued that the agreement could have a transformative impact on the region, contrasting it with the 2015 nuclear deal negotiated under former President Barack Obama.
“The Gulf Coalition see it as an opportunity to build and create a new Middle East, not just for the next few years but for the next generation,” he said.
The vice president added that the administration hopes to release the text of the agreement this week and believes it will demonstrate that the deal improves regional security while creating a framework for long-term economic and diplomatic engagement.
“I think when people see this deal, they’re going to realise that this is going to make the whole region safer,” Vance said.