The US and Iran have postponed the start of their negotiations over a permanent peace deal and restricting the Islamic Republic’s nuclear program.It’s uncertain why the talks, meant to be held in Switzerland on Friday, have been delayed, though Israel and Iran-backed Hezbollah militants clashed overnight in southern Lebanon. Iran has insisted on a ceasefire in Lebanon as part of an interim deal with the US finalized this week.
Neither is it clear if the developments will affect the Strait of Hormuz, where maritime traffic has picked up since US President Donald Trump and Iranian counterpart Masoud Pezeshkian signed the agreement on Wednesday.
The fighting in Lebanon was deadlier than usual, with the Israeli military saying four of its soldiers were killed, including a battalion commander. Israel’s attacks killed 18 people, Lebanon’s state-run National News Agency reported.
Strains between the US and Israel over Lebanon are growing. Trump has sworn at Israeli Prime Minister Benjamin Netanyahu in calls, accusing him of almost scuppering this week’s memorandum of understanding with Iran by escalating strikes in Lebanon. Israel insists it will keep troops across its borders until it’s sure Hezbollah, designated a terrorist organization by the US, is no longer a threat to its northern communities.
Related: Read 14-Point Draft Memorandum of Understanding Between the US and Iran
Itamar Ben Gvir, Israel’s far-right national security minister, reacted to the latest fighting in Lebanon by saying the Jewish state can’t ignore its security needs, “with all due respect to the US.”
“The whole of Lebanon must burn,” he said on X. Israeli politicians are in campaign mode ahead of elections in October, and a significant majority of the public is favor of continuing military operations in Lebanon.
Switzerland’s Foreign Ministry announced on Friday morning the US-Iran talks were “postponed,” without giving a reason. “Switzerland remains ready to facilitate these talks,” it said in a statement. “The relevant preparatory work” at the host resort of Burgenstock is continuing.
Late Thursday, the US said Vice President JD Vance, its lead representative, would not be departing for the face-to-face negotiations in Europe.
Similarly, Iranian Parliament Speaker Mohammad Bagher Ghalibaf, set to head his country’s delegation, isn’t thought to have left for Switzerland.
Washington and Tehran were meant to begin talks on a so-called “final agreement” for the MOU.
A White House spokesperson cited logistical challenges for the delay. The spokesperson said an American delegation is prepared to depart at the first available opportunity.
The MOU has led to the US lifting a naval blockade of Iranian ports and Iran saying it will reopen the Strait of Hormuz. They have agreed to extend their ceasefire during the new round of talks, which are meant to finish within 60 days but can be extended.
The sides will try to agree on restricting Iran’s processing of uranium, possibly for a decade or more, and destroying or diluting its existing stocks of highly-enriched uranium.
The US and Israel started bombing Iran on Feb. 28, saying they needed to stop the country building an atomic weapon. Tehran’s long denied wanting to do that but has enriched uranium to far beyond the levels needed for nuclear power plants.
The war caused energy prices to soar and pushed up inflation globally. Thousands of people died across the Middle East, mainly in Iran and Lebanon, while US allies such as the United Arab Emirates and Qatar were targeted with thousands of Iranian drones and missiles. The warring sides agreed a ceasefire on April 8, though it was shaky in recent weeks and Iranian and US forces clashed often.
Many atomic experts say 60 days won’t be enough to work out a permanent deal with Iran, given the complex and technical nature of the topic. A 2015 nuclear accord between Iran and world powers including the US, which Trump regularly derides and abandoned during his first term, took about two years to complete.
As the two nations begin to stake out negotiating positions, Vance and Trump have sought to counter criticism — including from political allies and Israelis — that Iran had gotten the better of them.
“We’re worried about what’s in the best interests of the American people,” Vance told the New York Times Opinion columnist Ross Douthat in an interview published on Thursday. “To the extent that, and I think the president has shown this, where he sees misalignment between the goals of the political system in Israel and the goals of the American people, he’s willing to say that we’re going to pursue America’s.”
Vance also downplayed concerns Iran could eventually impose tolls on traffic through the Strait of Hormuz, a move that would turn the crucial passage, widely considered international waters, into a moneymaker for Tehran.
“We believe international waterways should be free of tolls,” he said, noting that the countries in the region “together will figure out a proper security framework for the strait in the future.”
If the chokepoint is not open, Vance added, “there’s not going to be a final deal.”
Oil rose slightly on Friday, with Brent trading at $80.46 per barrel at 7:09 a.m. in London. Prices have still dropped about 8% this week, with traders anticipating the reopening of Hormuz Strait will ease the biggest energy-supply crunch in history.
Crude prices remains roughly 30% higher for the year because it will take months, if not longer, for oil and liquefied natural gas flows through Hormuz to return to normal. Moreover, the US and many other countries have run down emergency petroleum stockpiles at a record rate to keep a lid on prices during the war. Those will have to be replenished, which will add to global demand.
Trump reiterated that global energy pressures influenced his decision to sign on to the MOU deal.
“We wouldn’t have oil for months,” he told Axios. “As long as you’re dropping bombs, that thing is automatically closed,” he said of the strait,” adding “this is the kind of thing that could cause a worldwide depression.”
Ships carrying stranded oil from the Persian Gulf began making their way out of the Strait of Hormuz on Thursday. Kuwait said it would start ramping up production, as the MOU sparked a flurry of activity in the region.
Vessels carrying nearly 10 million barrels of oil have either appeared outside the strait or are sailing through, including the first Saudi-owned tankers since the war began more than three months ago.
Photograph: Smoke from an Israeli strike near Beaufort Castle in southern Lebanon, on June 19, 2026; photo credit: Jalaa Marey/AFP/Getty Images
Related:
Copyright 2026 Bloomberg.
Topics
USA
