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US-Iran peace talks postponed, clouding prospects for lasting truce - Finance news and analysis from Global Banking & Finance Review
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US-Iran peace talks postponed, clouding prospects for lasting truce

Published by Global Banking & Finance Review

Posted on June 19, 2026

5 min read

· Last updated: June 19, 2026

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With Lebanon ceasefire set, Trump envoy heads to Switzerland for U.S.-Iran talks

Main Developments in U.S.-Iran and Lebanon Negotiations

By Jana Choukeir and Steve Holland

DUBAI/WASHINGTON, June 19 (Reuters) - Israel and Hezbollah agreed to a ceasefire in Lebanon on Friday after an escalation in fighting there jeopardised the chances of an interim agreement on ending the war in Iran turning into a lasting Middle East peace deal.

U.S. Diplomatic Efforts and Ceasefire Details

U.S. President Donald Trump's special envoy, Steve Witkoff, is traveling to Switzerland for the first round of talks with Iran on a potential nuclear deal, Axios reported on Friday, citing a U.S. official.

The development comes a day after Vice President JD Vance canceled plans to attend the talks, which were called off amid the renewed fighting in Lebanon. That escalation has raised fresh uncertainty over the fate of negotiations critical to reopening the Strait of Hormuz to global shipping.

Trump told NBC News he had spoken with Israel and asked it to agree to the ceasefire.

"You just gotta calm down sometimes and use your head," Trump was quoted as saying by an NBC reporter on X, who added that the president had declined to specify whether he spoke with Israeli Prime Minister Benjamin Netanyahu directly.

A senior U.S. official said the ceasefire came into effect around 4 p.m. Lebanon time (1300 GMT) following an exchange of fire, adding that negotiators for the U.S. and Qataris had worked out the agreement with help from Iran.

Two sources from Iran-aligned Hezbollah and a senior Israeli official confirmed the ceasefire to Reuters.

"If Hezbollah does not attack us, then for us it is not a time of war," the Israeli official said, adding that Israel would keep its forces in southern Lebanon, where it has occupied an area along Israel's northern border.

Two Lebanese security sources said Israel had carried out a dozen airstrikes in the first hour of the ceasefire but none were recorded after 5 p.m.

Lebanon's health ministry said Israeli strikes after midnight into Friday had killed 47 people and wounded 97, while the Israeli military said four soldiers had been killed in an incident in Lebanon, without giving further details.

The conflict in Lebanon could weigh on negotiations because ending fighting there is a condition for the broader U.S.-Iran accord.

Unresolved Issues in the U.S.-Iran Agreement

TOUGH ISSUES STILL UNRESOLVED

A memorandum of understanding signed this week by the Iranian and U.S. presidents left discussion of Iran's nuclear programme and other tough issues until later, giving the sides 60 days to reach a lasting agreement or extend the interim deal.

Preparations for technical talks to start in the Swiss mountaintop resort of Buergenstock were far advanced when the White House said on Thursday that Vance would not attend.

The Swiss foreign ministry said the talks had been postponed and that Switzerland remained ready to facilitate them and the relevant preparatory work was continuing.

The broad interim deal requires the United States, Iran and their allies to declare an immediate and permanent termination of military operations on all fronts, including in Lebanon.

Israel, left out of the talks, says it is not party to the deal. 

Iran's Foreign Minister Abbas Araqchi, in a phone call with his Pakistani counterpart on Friday, said the U.S. would be responsible for any violation of its commitments under the deal, including ending the fighting in Lebanon, his ministry said.

Prospects for Israel-Lebanon Negotiations

NEW ROUND OF ISRAEL-LEBANON TALKS DISCUSSED

Lebanon was sucked into the regional war when Hezbollah opened fire at Israel on March 2, prompting Israel to launch an offensive against the group and invade the south of the country.

Lebanese President Joseph Aoun condemned the latest Israeli attacks but said the escalation would not hinder efforts to reach a comprehensive ceasefire. 

The U.S. State Department said Secretary of State Marco Rubio spoke to Aoun and reiterated the need to disarm Hezbollah while reaffirming U.S. support for  a "fully sovereign" Lebanese state. 

It said they also discussed holding a next round of Israel-Lebanon negotiations in Washington from June 23-25. The Lebanese presidency said a comprehensive ceasefire was a fundamental pillar for these talks.

Trump's Defense of the Interim Deal

TRUMP DEFENDS INTERIM DEAL

The Iran war, which began on February 28 with U.S. and Israeli air attacks on Iran, has killed at least 7,000 people, mostly in Iran and Lebanon. It also pushed up energy prices, stoking inflation worldwide.

    Brent crude ticked higher on Friday, but stayed set for a weekly fall of around 8% after the Lebanon ceasefire, and oil shipments through the Strait of Hormuz picked up after the signing of this week's deal.

The strait carried nearly a fifth of global crude oil and liquefied natural gas supplies before it was blockaded by Iran during the war.

The body set up by Iran to manage the strait said on Friday it would waive planned fees during the interim deal's negotiation period.

The MoU foresees relief for Iran from economic sanctions, the unfreezing of assets worth tens of billions of dollars and immediate U.S. waivers for its exports of oil. It also provides for a $300 billion reconstruction fund for Iran and other financial incentives.

Trump again defended the deal after criticism in Washington, including from some of his Republican allies in Congress who question whether he conceded too much to end a war unpopular with most Americans ahead of midterm elections in November.

"The War has diminished Iran!" he wrote in social media posts on Friday, adding: "We didn’t meet out of desperation, Iran did. They are FINISHED! We’ll play out the 60 days. They get no money, not ten cents!"

(Reporting by Reuters bureaus, Writing by Timothy Heritage, Gareth Jones and David Brunnstrom; Editing by Don Durfee, Sanjeev Miglani and Alistair Bell)

Key Takeaways

  • Switzerland announced that Friday’s U.S.–Iran technical talks at Bürgenstock were postponed, though preparatory work continues (cadenaser.com).
  • Vice President JD Vance delayed his travel to Switzerland, with the White House citing logistical challenges amid regional instability (apnews.com).
  • Intense Israeli strikes in southern Lebanon threaten the fragile ceasefire and may be a key factor in Iran’s hesitation to participate in talks (apnews.com).

References

Frequently Asked Questions

Why were the US-Iran peace talks postponed?
The talks were postponed due to logistical issues and uncertainty around Iran's participation and readiness to proceed.
What are the economic implications of the delayed peace talks?
The postponement has fueled uncertainty, affecting global energy markets and keeping energy prices elevated.
What did the preliminary US-Iran accord include?
The accord provided sanctions relief, unfroze tens of billions in assets, and included a ceasefire extension and financial incentives.
How has Israel responded to the US-Iran peace agreement?
Israel has distanced itself from the US-Iran accord and continued its military operations in Lebanon against Hezbollah.
What are the next steps in the US-Iran negotiation process?
Negotiators have 60 days to agree on Iran's nuclear program status and finalize $300 billion in reconstruction funds.

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