All-night peace talks between the United States (US) and Iran at the Bürgenstock resort in Switzerland have reportedly made “significant progress”. The high-level technical talks were initiated as a follow-up to a memorandum of understanding (MoU) earlier last week to finalize a comprehensive peace agreement within two months.
Iranian Foreign Minister Abbas Araghchi confirmed that Tehran has begun to enjoy economic benefits from the easing of commercial sanctions by the White House. These benefits include exemptions for oil and petrochemical exports, the end of a naval blockade on ports, and the release of some of Iran’s frozen financial assets in Qatar.
The peace plan, however, is still plagued by uncertainty due to the military crisis in Lebanon involving Israel’s attacks on the Hezbollah militia. Third parties, Pakistan and Qatar, have set up teams to monitor the cessation of arms operations in Lebanon, which negotiators describe as the real test of the viability of the MoU.
On the commodity exchange, Brent crude oil prices fell 0.7% to around $80 a barrel, recording a cumulative fall of almost 8% over the past week as maritime transit volumes in the Strait of Hormuz increased. However, the Middle East energy market chain was shaken by a major explosion at QatarEnergy's Barzan gas supply plant that injured 54 workers.
Meanwhile, the diplomatic process in Bürgenstock continued to be closely monitored by the US delegation led by Vice President JD Vance, Jared Kushner, and the Speaker of the Iranian Parliament, Mohammad Bagher Ghalibaf. President Donald Trump kept up the pressure by issuing a stern warning that he was ready to impose a permanent toll system in the Strait of Hormuz if this round of technical negotiations failed.
