Transcript of US Lifts Oil Sanctions On Iran, Trump Shifts To Economy, MN Subpoenas Thrown Out

The U.S. has temporarily lifted oil sanctions on Iran for the first time in decades.

It's one of several incentives to get Tehran to comply with U.S. nuclear demands. Vice President Pence says Iran will let inspectors back in, but Iran says it agreed to no such thing.

I'm Michelle Martin. That's A. Martinez. And this is Up First from NPR News. President Trump is heading to Pennsylvania today to talk up the economy. He has promised gas and grocery prices will fall now that the war is ending. But his approval numbers are at record lows, and even some Republicans aren't convinced.

And a federal judge in Minnesota threw out grand jury subpoenas from the Trump administration. The judge said they were used to harass and retaliate against officials who wouldn't help the president's immigration crackdown. Stay with us, we've got the news you need to start your day.

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The United States has lifted oil sanctions on Iran.

It's a temporary measure that lets Iran sell its oil in U.S. dollars on the global market. The 60-day sanctions exemption is just one of several economic incentives coming Iran's way.

NPR's international correspondent Taya Batrawy is in Dubai to explain what all of this means. So, okay, these oil sanction waivers were announced by Treasury Secretary Scott Bessant yesterday. What does it mean for Iran?

Well, it basically means Iran can sell freely at standard prices, just like any other major Gulf oil producer. And this is a pretty stunning turnaround from what was just a weeks-long U.S. naval blockade on Iran's ports. For years, Iran had been evading U.S. sanctions through dark fleets. These are ships that would turn off their tracking systems and hide their margin. And then Iran would mostly sell this cargo to state-linked Chinese companies who were motivated to buy from Iran because the oil was sold at a discount outside of the international dollar banking system. But the idea here with these waivers is to incentivize Iran to comply with U.S. demands on its nuclear program during the duration of these talks.

So on that note, uh, Vice President, uh, JD Vance, who's leading the negotiation, says Iran has agreed to allow nuclear inspectors into the country. What can you tell us about that?

So the current deal with the United States not only lifts oil sanctions on Iran through much of August, but also unlocks billions of Iran's frozen dollars in overseas accounts in Qatar. And with Vance as the face of these negotiations, he's been trying to sell this deal as one that's primarily good for the United States. And he says Iran won't see anything until its policies change. And I want you to have a listen to what he said in Switzerland yesterday after the first round of high-level talks with Iran.

The Iranians have agreed to invite IAEA inspectors back into their country. That is a major milestone for the American people and the first step in permanently denuclearizing or permanently ending a nuclear weapons program in Iran.

Okay. But for context here, the head of the International Atomic Energy Agency that Vance is referring to was in the United Arab Emirates earlier this month. And I was there when Rafael Grossi said inspectors are already in Iran and had visited small labs in places that hadn't been attacked. But Vance seems to be implying here that they would be able to inspect nuclear sites like Fordow, Isfahan, and Natanz, which were damaged in U.S. airstrikes last year. The IAEA says those airstrikes obscured its ability to check on these sites, and the agency says that just days before that war last June, they had been able to verify Iran's stockpile of highly enriched uranium.

All right. So what's Iran been saying?

So Iran says there are no plans for inspections of damaged nuclear sites and that nothing of the sort was discussed in Switzerland. It says Iran's interactions with the IAEA would continue as usual. And the foreign ministry pointed to a preliminary deal signed with the U.S. that says talks talks on a final agreement begin after oil sanctions and the US naval blockade have been lifted, which we know has already happened, and after there's a ceasefire in Lebanon between the Iran-backed Hezbollah and Israel, which has been largely holding since Sunday. But crucially, it also says that talks on a final deal come after the US makes, quote, fully available Iran's frozen assets. Those are the billions that are in Qatar right now. And for its part, Iran has to reopen the Strait of Hormuz to commercial shipping and oil tankers. But maritime tracking firms say just a couple dozen ships are transiting a day, so we're still far those prewar levels.

That's NPR's Ayah Batrawy in Dubai. Thank you very much.

Thanks, A.

As his top negotiators look to finalize plans to end the war in Iran, the president is turning the page a bit to the economy.

He is heading today to Lehigh Valley, Pennsylvania, where he will tour a Mack Trucks manufacturing plant to tout what he sees as his economic gains.

NPR White House correspondent Franco Ordoñez will be following the visit. So not the typical domestic trip for President Trump, Franco.

Yes and no, but I'd largely say no because of the timing of the visit. I mean, this is going to be his first domestic trip since signing an agreement with the Iranians to end their fighting in the Middle East. And as you mentioned, it's a chance for Trump to turn the page and focus on his domestic agenda. Now, I expect he'll outline some of the economic gains that he's been promising would happen once the fighting has stopped. I mean, politically, he also needs this. His approval ratings continue falling to record lows over his handling of the economy. According to NPR's most recent polling, just 36% of voters say they approve of Trump's overall job performance, while 59% say they disapprove. And that's the widest gap Trump has faced during either term in office.

He's made big promises that gas prices and food prices will start to drop once the war is over. I mean, is that what you expect to hear today?

Yeah, to a certain degree. I mean, he's been very clear when pressed about the high cost of living in America right now, that all that would change once the war is over and that the Strait of Hormuz is open again, that gas prices would plummet and as would other energy prices. And he actually acknowledges thinking about the political and economic consequences if that doesn't happen. I don't want to be Herbert Hoover.

That's the president I don't want to be because he, you know, he was in charge during the Great Depression.

And yesterday he boasted that the strait was open and that there was now a, quote, oil gusher. So I expect you'll hear some of that today, but I wouldn't be surprised at all if he urges folks to also have some patience.

More patience.

Okay.

So what do you mean?

Well, I mean, obviously there are a lot of factors that go into this. I mean, it's a very delicate and uncertain moment. I mean, but even if the strait is reopened, it could take some time, likely months, until US drivers see gas prices fall to pre-conflict levels. I mean, this was a months-long blockade that severely disrupted energy markets and messed with prices across several sectors. I mean, the disruptions also involved natural gas, feedstock, fertilizer. It affected supply chains. So it could really be months before grocery prices come down.

All right. Now, getting back to the politics, especially with the midterms coming up, how important is it for President Trump to address the economy?

I mean, it's extremely important. I mean, pundits will tell you that voters don't go to the polls on foreign policy issues, but they will absolutely make their voices heard about inflation. And higher prices. I quoted NPR's polling earlier, and it's not just Democrats who are concerned about the economy under Trump. Republicans are as well. I mean, 22% of Republicans say they disapprove of Trump's handling of the economy. Hey, that's a really big number for a president who has long had an iron grip on Republican support. I mean, Republican elected officials, lawmakers, have been clamoring for Trump to zero in on the economy for months now, especially with the midterms approaching. They've been doing this over and over again, but the Trump administration continues to talk about these issues and foreign policy. I think the real question now is whether it's going to be soon enough for Trump to make a difference, or is it too late?

That's NPR White House correspondent Franco Ordoñez. Thanks a lot.

Thanks, Hank.

In Minnesota, a federal judge threw out grand jury subpoenas from the Trump administration.

The judge said the subpoenas were used to harass, coerce, and retaliate against Minnesota officials who did not cooperate with the federal government's immigration policies.

Minnesota Public Radio's Jon Collins is with us now to tell us more about it. Good morning.

Good morning.

So the federal government issued 6 subpoenas. What did the government say they were looking for?

So they were looking for answers from some longtime opponents, including Governor Tim Walz and Attorney General Keith Ellison, as well as the mayors of Minneapolis and St. Paul and the counties where they're located. And the subpoenas came down during the height of the ICE surge into Minnesota. And that's where thousands were arrested and two American citizens were shot to death by federal agents. But essentially, the subpoenas were aimed at getting these Minnesota officials to hand over any information about their response to the federal government's immigration surge in Minnesota.

And what did the judge say in throwing them out?

The judge sided with Minnesota state and city officials who argued that these subpoenas violated their 10th Amendment rights, which says the federal government can't use its powers to compel or harass local governments into adopting certain federal policies. And that's exactly what the judge appears to think the Trump administration was trying to do here. And the judge in this case, Patrick Schiltz, noted the context that these subpoenas occurred in. They were issued right as President Trump threatened retribution against the state, and at a time when top officials in the Trump administration were also publicly pushing the state to cooperate more closely with federal immigration efforts or to face the consequences.

And what did the judge say anymore about how he came to this conclusion that the federal government overstepped its authority here?

The judge said harassing local and state officials is not an appropriate use of grand jury subpoenas. It's a misuse of a very powerful tool. But Judge Schiltz also said the federal government's assertion that these incredibly broad subpoenas had any clear purpose in a criminal investigation was absurd. He said none of the federal government's examples it cited justified the subpoenas. And he said it's clear that the goal of the subpoenas was instead to coerce Minnesota officials into assisting with the enforcement of federal civil immigration law and to harass and retaliate against them for failing to do so.

Have, have the Minnesota authorities responded to this?

Governor Tim Walz released a statement saying the decision is a, quote, victory for the rule of law and our democracy. And Walz said the use of grand jury subpoenas was just one more example of this federal administration's lawlessness. Minneapolis Mayor Jacob Frey said it was a vindication of free speech, and he said criticizing the government is not a crime.

And is the federal government responding? And what, if you know, what could be next here?

The U.S. Department of Justice sent me a brief statement saying it takes the unlawful obstruction of federal law seriously and that it will continue to investigate. The judge here also took the step of saying he plans to unseal the grand jury testimony that led to these subpoenas, which is typically secret. He's given the federal government time to challenge it, but he said there's both a public interest and an interest by local governments in having these grand jury documents unsealed, and that could happen as soon as next month.

Well, there's actually some extraordinary developments there. That is John Collins of Minnesota Public Radio. John, thank you.

Thank you.

And that's Up First for Tuesday, June 23rd. I'm Emilio Martinez.

And I'm Michelle Martin. Today's episode of Up First was edited by Tina Krya, Rebecca Metzler, Cheryl Corley, Mohamed El Bardisi, and John Stollness. It was produced by Ziyad Butch and Nia Dumas. Our director is Christopher Thomas. We get engineering support from Stacey Abbott. Our technical director is Carly Strange, and our supervising senior producer is Vince Pierson. We hope you'll join us again tomorrow.

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