The United States and Iran made “encouraging progress” in talks on a peace deal and will continue technical-level discussions this week, mediators said, even as President Donald Trump again threatened strikes if Hezbollah keeps attacking Israel.
High-Level Talks in Switzerland
U.S. Vice President JD Vance and Iranian Foreign Minister Abbas Araghchi were among the participants in the talks in Bürgenstock, Switzerland. “Encouraging progress has been made including the creation of a mechanism for further technical talks,” mediators Qatar and Pakistan said in a joint statement. The parties agreed on a roadmap toward reaching a final deal within 60 days.
The sides established a communication line to avoid incidents and miscalculations, with the aim of ensuring safe passage for commercial vessels through the Strait of Hormuz, the mediators said. They also agreed to create a “de-confliction cell” involving the parties and Lebanon to help ensure adherence to the cessation of military operations there.
Market Reaction
Crude oil turned lower and U.S. stock-index futures pared losses after the statement. Brent crude fell 1.5 per cent to trade below US$80 a barrel after climbing more than two per cent.
Pakistani and Qatari mediation delivered major progress toward ending the war in Lebanon, Araghchi said in a post on X. “Oil and petrochem exports are waived, blockade lifted, some frozen assets released, and major reconstruction & development plan launched for Iran,” the post from the foreign minister said.
Trump's Threats
Things got off to a confusing start Sunday when Iranian media reported that Iran halted talks over Trump’s latest threat. As the meetings got underway, Trump said in a social media post that he would strike Iran again if it doesn’t “immediately stop their highly paid PROXIES in Lebanon from causing trouble.” He also warned Iran that the U.S. might start collecting tolls if there’s no deal. Speaking Sunday to Fox News, Trump said he told Iranian leaders directly that if they close Hormuz, “You won’t even make it back” to Iran, using an expletive.
Beginning of Technical Negotiations
While a hard-won interim deal has signalled a pause in U.S.-Iran hostilities, Sunday’s discussions are likely just the start of protracted wrangling that will span topics including Iran’s nuclear capabilities and economic relief for Tehran. “What today really represents is the beginning of a technical negotiation that’s not going to solve every disagreement,” Vance told reporters, speaking alongside officials from Pakistan and Qatar. Jared Kushner and Steve Witkoff, Trump’s global negotiators, have been engaged in ongoing technical talks.
A resolution to the fighting in Lebanon will be decisive for the success of the U.S.-Iran talks in Switzerland, according to an official familiar with the discussions, who asked not to be identified discussing sensitive information. That means a positive outcome in the negotiations ultimately hinges on Israel’s support, the person added, with only a retreat from Lebanon fully ensuring that the interim deal can move forward.
