US and Iran Locked in Midnight Talks as Lebanon War Threatens 60-Day Nuclear Deal

The talks, held at a neutral venue in Switzerland, aim to build on a memorandum of understanding signed on June 17 that paused hostilities between the two countries [180158]. The agreement was supposed to reopen the Strait of Hormuz, ease some economic sanctions on Iran, and begin formal negotiations [180158]. But just days into the 60-day window, the ceasefire is already showing signs of collapse [178534].

Iran has now declared that the conflict in Lebanon will be the “main topic” of the talks, a shift that threatens to delay progress on the nuclear deal [178553]. Hezbollah, a powerful Iran-backed group, is involved in heavy fighting with Israeli forces near the border [178544]. Israeli strikes on Lebanon have continued despite the ceasefire agreement, with Israel saying it is responding to projectiles fired by Hezbollah at its troops [178538].

The negotiations got off to a rocky start when Iran’s delegation walked out in response to US President Donald Trump’s threats to strike Iran over its support for Hezbollah [178909]. A US diplomat said the Iranian delegation was involved in “robust” discussions before the walkout, and talks are expected to continue through the night [178909].

The situation is further complicated by Iran’s claim that it has closed the Strait of Hormuz, a narrow waterway through which about 20% of the world’s oil passes, citing continued fighting in Lebanon as its reason [178534]. The sudden closure threatens to disrupt global energy markets and raise fuel prices worldwide [178534].

Israel has ordered its military to stop fighting in southern Lebanon following intense attacks, a decision that came as Iran’s delegation arrived in Switzerland for negotiations [178114]. However, Israel has refused to withdraw from a security zone in southern Lebanon, adding further tension to the talks [178532].

The outcome of these discussions could have major implications for regional stability [179647]. Analysts say the region will now lean more toward China, as the US has shown it can be drawn into costly wars while China has stayed out of the conflict [180165].