(Bloomberg) — The US and Iran began talks in Switzerland on a peace deal to settle the issue of the Islamic Republic\u2019s nuclear program and permanently reopen the Strait of Hormuz as President Donald Trump once again threatened strikes if Hezbollah keeps attacking Israel.<\/p>\n
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Things got off to a confusing start Sunday when Iranian media reported that Iran halted talks over Trump\u2019s latest threat, but people familiar with the matter said the talks were continuing.<\/p>\n
Talks continued into the early hours of Monday in Switzerland, with topics including deconfliction mechanisms to ensure Hormuz remains open and how to enforce the ceasefire between Israel and Hezbollah in southern Lebanon, according to a senior US diplomat engaged in the talks.<\/p>\n
The meeting is seen as a starting point for ongoing technical talks moving forward, the diplomat added.<\/p>\n
The first high-level meetings of US, Iranian, Qatari and Pakistani representatives opened in the Swiss resort of B\u00fcrgenstock, with US Vice President JD Vance and Iranian Foreign Minister Abbas Araghchi among attendees.<\/p>\n
As the meetings got underway, Trump said in a social media post that he would strike Iran again if it doesn\u2019t \u201cimmediately stop their highly paid PROXIES in Lebanon from causing trouble.\u201d<\/p>\n
He also warned Iran that the US might start collecting tolls if there\u2019s no deal. Speaking Sunday to Fox News,Trump said he told Iranian leaders directly that if they close Hormuz, \u201cYou won\u2019t even make it back\u201d to Iran, using an expletive.<\/p>\n
Oil rose after Trump\u2019s threats, with Brent crude climbing as much as 2.2% at the open to $82.30 a barrel, while West Texas Intermediate was near $77.<\/p>\n
While a hard-won interim deal has signaled a pause in US-Iran hostilities, Sunday\u2019s discussions are likely just the start of protracted wrangling that will span topics including Iran\u2019s nuclear capabilities and economic relief for Tehran.<\/p>\n
\u201cWhat today really represents is the beginning of a technical negotiation that\u2019s not going to solve every disagreement,\u201d Vance told reporters, speaking alongside officials from Pakistan and Qatar, which are acting as mediators. Jared Kushner and Steve Witkoff, Trump\u2019s global negotiators, have been engaged in ongoing technical talks.<\/p>\n
Read the 14-Point Draft Memorandum Between the US and Iran<\/p>\n
A resolution to the fighting in Lebanon will be decisive for the success of the US-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 hinge on Israel\u2019s support, the person added, with only a retreat from Lebanon fully ensuring that the intermediate deal can move forward.<\/p>\n
Israel was not a party to the talks that led to the interim agreement.<\/p>\n
Other issues in focus are the Strait of Hormuz, US sanctions and the return of frozen Iranian assets, the person said. The Swiss are keeping the venue ready until mid-morning on Monday, allowing negotiations to run until then if necessary.<\/p>\n
Iranian envoys are focused on how the meeting will be received at home, the official said. That led to their delegation staying out of the room and refusing to participate in the opening televised remarks before discussions started because they did not want to be seen shaking hands with US delegates before agreements had been reached, the person said.<\/p>\n
The official also added that a key challenge in getting the countries onto the negotiating table was to bridge the completely different mentalities between Iranian and US representatives.<\/p>\n
The meeting \u201cis going to allow us to sit together as teams for the first time really in history to figure out what matters most to the respective parties, to settle those issues, to solve those issues, and get to a better tomorrow,\u201d Vance said.<\/p>\n
Iran\u2019s semi-official ISNA news agency said the main topics of the talks would be a \u201ccomprehensive ceasefire\u201d in Lebanon, including an Israeli withdrawal, and the fate of billions of dollars in Iranian assets frozen overseas.<\/p>\n
Tehran on Saturday accused Israel of violating a truce in Lebanon and said the Strait of Hormuz, a key transit point for global energy supplies, would be shut again. Despite the announcement, millions of barrels of oil continued to flow through the waterway.<\/p>\n
Under the terms of the memorandum of understanding signed by Trump on Wednesday, the US and Iran have 60 days for negotiations, although the pact allows for an extension.<\/p>\n
Iran\u2019s announcement on Hormuz cast a cloud over the talks, but the immediate impact on vessel traffic was unclear. Even before the recent ceasefire, millions of barrels of oil had been quietly escaping the waterway each day.<\/p>\n
Three fully laden India-linked supertankers re-emerged in the Gulf of Oman on Sunday after signaling an attempt to cross the strait on Friday, according to ship-tracking data compiled by Bloomberg.<\/p>\n
The supertankers, each signaling Indian ownership or India-bound cargo, carry nearly 6 million barrels of Iraqi and Kuwaiti oil. Their attempts to sail toward Qeshm island suggest they may have taken a Tehran-approved route.<\/p>\n
US Central Command said commercial ship traffic increased in the strait on Saturday, with 55 merchant ships transiting cargo and more than 17 million barrels of oil.<\/p>\n
Energy Secretary Chris Wright said on Fox News Sunday that the US was still escorting ships and \u201cdemonstrating we can transit the strait with or without\u201d Iran.<\/p>\n
Israel, Washington\u2019s partner in the war on Iran that began Feb. 28, has been fighting a parallel campaign against Hezbollah in neighboring Lebanon. Iran has consistently sought to link the conflict there, which has killed thousands and displaced more than 1 million Lebanese, with the broader US negotiations.<\/p>\n
Tehran views the US as having \u201cdirect responsibility\u201d for the situation in Lebanon and Israel\u2019s military actions, Foreign Ministry spokesman Esmail Baghaei said in comments cited by the IRNA news agency.<\/p>\n
Israel has insisted it\u2019ll keep troops on its borders until it\u2019s sure that Hezbollah, designated a terrorist organization by the US, is no longer a threat. The Israel Defense Forces said its recent operations are targeting a network of underground bunkers where Hezbollah fighters are believed to be sheltering.<\/p>\n
\u201cThere has been, and there is, no restriction on IDF soldiers in Lebanon acting to remove threats,\u201d Israeli Defense Minister Israel Katz said on Sunday.<\/p>\n
\u201cOur forces remain deployed in the security zone along the Yellow Line in Lebanon and operate from there against terrorists and terrorist infrastructure,\u201d he said, reiterating that Israel would not withdraw.<\/p>\n
Trump has expressed frustration with Israeli Prime Minister Benjamin Netanyahu over previous strikes, suggesting they risked undermining the US-Iran talks.<\/p>\n
\u201cIsrael has the right to defend itself,\u201d Vance told reporters on Thursday. \u201cBut fundamentally, the Israelis, just like everybody else, have to respect this peace process that is fundamentally good for them and good for the entire region.\u201d<\/p>\n
The US-Iran memorandum led Washington to lift a naval blockade of Iranian ports and promise to waive sanctions that have blocked the sale of Iranian crude. Iran pledged to reopen Hormuz, a conduit for about a fifth of the world\u2019s oil and gas supplies.<\/p>\n
Tehran, though, has warned it will require ships to have its permission and mandatory insurance in order to cross. The US, Europe and Gulf Arab states have balked at the idea of Iran imposing fees.<\/p>\n
The sides have already made \u201cgreat progress\u201d over the last few hours, Vance told reporters on Sunday in Switzerland.<\/p>\n
\u201cI expect it will make additional progress in the hours to come,\u201d he said.<\/p>\n
–With assistance from Sara Gharaibeh, Weilun Soon, Jennifer A. Dlouhy, Dan Williams and Fiona MacDonald.<\/p>\n
(Updates with US diplomat starting in third paragraph)<\/p>\n
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