Mediators Qatar and Pakistan said discussions were conducted in a “positive and constructive atmosphere” and produced initial agreements designed to lower the risk of military incidents in Lebanon and the Gulf.

The two countries announced the creation of a technical framework for continued negotiations, including a direct contact mechanism intended to prevent misunderstandings and incidents in the Strait of Hormuz, one of the world’s most strategically important maritime trade routes.

They also confirmed the establishment of a “de-confliction cell” involving the relevant parties and Lebanese authorities, aimed at preventing a resumption of hostilities between Israel and the Iran-backed Hezbollah movement.

The talks mark the first formal meeting between American and Iranian officials since the signing of a memorandum of understanding intended to end months of regional conflict. The agreement included provisions calling for an end to fighting in Lebanon, where Hezbollah and Israeli forces have been engaged in a prolonged confrontation that intensified following the broader Iran-Israel conflict.

Iranian Foreign Minister Abbas Araghchi welcomed the outcome, describing the negotiations as a significant step toward stabilizing Lebanon and reducing regional tensions.

In a statement posted on social media, Araghchi said progress had also been made on economic issues, including the easing of restrictions on Iranian oil and petrochemical exports, the release of some frozen assets and plans for reconstruction and development initiatives.

The negotiations faced early uncertainty after Iran’s delegation briefly suspended participation following comments by U.S. President Donald Trump threatening renewed military action against Tehran over its support for Hezbollah. Talks later resumed and concluded with the announcement of the new coordination mechanisms.

Separately, Lebanese President Joseph Aoun held a joint call with U.S. Vice President JD Vance, senior presidential adviser Jared Kushner and Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani. According to the Lebanese presidency, the leaders discussed measures to reinforce the ceasefire in Lebanon, halt further Israeli military escalation and advance the proposed de-confliction framework.

Israel also signaled conditional support for maintaining the ceasefire. Foreign Minister Gideon Saar said Israel would respect the truce provided Hezbollah did not violate its terms.

Speaking in a call with New Zealand Foreign Minister Winston Peters, Saar said Israel had no territorial ambitions in Lebanon but would maintain its security zone to prevent future attacks by Hezbollah.

He added that dismantling Hezbollah’s military infrastructure would serve the interests of both Israel and Lebanon, while accusing Iran of exercising influence over Lebanon through the armed group.

The latest diplomatic efforts come as international mediators seek to transform a fragile cessation of hostilities into a more durable arrangement, with Lebanon emerging as a key test of broader efforts to reduce tensions between Washington and Tehran.

The talks, mediated by Pakistan and Qatar, marked the opening phase of a 60-day diplomatic process designed to translate a recently signed memorandum of understanding into a broader settlement covering regional security, maritime navigation and Iran’s nuclear program.

Mediators said the parties agreed to establish a “de-confliction cell” involving Lebanese authorities to monitor and support the implementation of a ceasefire between Israel and the Iran-backed Hezbollah movement. The mechanism is intended to reduce the risk of renewed military escalation in Lebanon, where hostilities have continued despite previous truce efforts.

Pakistan and Qatar described the discussions as constructive and confirmed that lower-level technical negotiations would continue throughout the week in Switzerland.

The negotiations faced an uncertain start after Trump publicly warned Iran against supporting Hezbollah operations in Lebanon and threatened renewed military action against Tehran.

“Iran must immediately stop their highly paid proxies in Lebanon from causing trouble,” Trump said in comments that prompted a sharp response from Iranian officials.

Iranian negotiators temporarily suspended participation and consulted with Qatari mediators before returning to the talks, according to officials familiar with the discussions. Mediation efforts by Qatar and Pakistan helped keep negotiations on track.

Iranian Foreign Minister Abbas Araghchi later praised the diplomatic efforts, describing the newly established Lebanon coordination mechanism as the first major test of the broader agreement.

The talks brought together U.S. Vice President JD Vance, special envoy Steve Witkoff and presidential adviser Jared Kushner with Iranian Parliament Speaker Mohammad Bagher Qalibaf and Foreign Minister Araghchi.

According to officials involved in the negotiations, discussions focused on maintaining freedom of navigation through the Strait of Hormuz, enforcing the Lebanon ceasefire and laying groundwork for future negotiations on Iran’s nuclear activities.

The status of the Strait of Hormuz remained a contentious issue. Iran maintained that it had reimposed restrictions on passage through the strategic waterway over the weekend, while U.S. officials insisted commercial shipping traffic continued.

The narrow channel carries a significant share of global oil exports, making its security a major concern for energy markets and governments worldwide.

The broader agreement between Washington and Tehran includes provisions allowing Iran greater access to oil export markets and frozen overseas assets in exchange for commitments related to regional security and nuclear oversight.

However, differences remain over uranium enrichment. Iranian President Masoud Pezeshkian reiterated that Tehran would not relinquish what it considers its right to enrich uranium, while U.S. officials continue to seek constraints on Iran’s nuclear activities.

Vance described the negotiations as an opportunity to reshape regional relations and expressed hope that both sides could build on the initial diplomatic progress.

Financial markets have closely monitored the talks. Oil prices fell sharply after the announcement of the initial U.S.-Iran understanding, reflecting expectations that a sustained reduction in regional tensions could ease concerns about disruptions to global energy supplies.

The continuation of technical negotiations this week is expected to determine whether the parties can bridge remaining differences on Lebanon, maritime security and Iran’s nuclear program before senior officials reconvene for the next phase of talks.

The conflict exposed the vulnerability of Middle Eastern energy exporters to disruptions in one of the world’s most important maritime chokepoints. The Strait of Hormuz, through which a significant share of global oil and liquefied natural gas shipments passes, became the focal point of market instability after Iran imposed a blockade that disrupted energy flows across the Gulf.

The closure stranded roughly one-fifth of global oil and LNG supplies, forcing producers to curtail approximately 11 million barrels per day of oil output while disrupting refinery operations and liquefied natural gas facilities throughout the region.

Although Washington and Tehran have since agreed to pursue negotiations toward a permanent peace arrangement, energy producers and policymakers are increasingly treating future disruptions as a recurring strategic risk rather than a remote possibility.

As a result, Gulf governments are prioritizing investments in pipelines, export terminals and overseas assets to reduce dependence on Hormuz and strengthen resilience against future crises.

Saudi Arabia is widely viewed as the region’s strongest example of successful diversification. Long before the recent conflict, state-owned Saudi Aramco developed a 1,200-kilometer pipeline linking oil fields in the Gulf to the Red Sea port of Yanbu. The infrastructure enabled the kingdom to redirect a substantial portion of its exports away from Hormuz during the crisis.

The economic benefits of that strategy became evident as Saudi Arabia experienced a comparatively limited impact from the disruption. According to International Monetary Fund projections cited in the analysis, the Saudi economy is expected to grow by 3.1 percent in 2026, representing a relatively modest downgrade from pre-war forecasts.

The United Arab Emirates also benefited from existing infrastructure. The country continued exporting significant volumes of crude through the Fujairah terminal on the Gulf of Oman, despite disruptions caused by military activity. Abu Dhabi is now accelerating plans to expand export capacity through a second pipeline to Fujairah, with completion targeted for 2027.

Iraq faces a more complicated challenge because much of its production is concentrated in the south and remains heavily dependent on Gulf shipping routes. Iraqi authorities and energy companies are examining possibilities for expanding northern export corridors through Turkiye and Syria, though political instability and security concerns continue to complicate such plans.

The situation is particularly difficult for Qatar and Kuwait, both of which lack substantial alternative export routes outside the Strait of Hormuz.

For Qatar, one of the world’s largest exporters of liquefied natural gas, bypassing Hormuz would likely require cooperation with neighboring states through pipeline networks crossing the United Arab Emirates, Oman or Saudi Arabia. Such projects would involve major financial investments and could increase Doha’s dependence on regional partners, introducing new strategic considerations.

Kuwait faces a similar predicament, with future diversification efforts likely to require deeper energy integration with Saudi Arabia and potentially broader regional infrastructure cooperation.

Beyond pipeline development, Gulf energy producers are increasingly pursuing geographic diversification through overseas investments. National energy companies have expanded portfolios across international oil, gas, refining, storage and renewable energy projects to create revenue streams less exposed to regional geopolitical risks.

Companies including QatarEnergy and Abu Dhabi National Oil Company have already established significant international footprints, and analysts expect such investments to accelerate as governments seek greater protection from future disruptions in Gulf shipping lanes.

The shift reflects a broader reassessment of energy security across the region. Infrastructure once viewed as supplementary is increasingly being treated as essential, while export diversification has moved from a long-term strategic objective to an immediate economic priority.

As Gulf producers recover from the effects of the Iran conflict, decisions on pipelines, transport corridors and overseas investments are expected to influence trade patterns, diplomatic relationships and energy markets well beyond the Middle East, redefining regional economic architecture in the years ahead.

Saudi Arabia welcomed the agreement between Washington and Tehran to halt military operations and begin negotiations over a 60-day period aimed at reaching a permanent settlement.

Kuwait also welcomed the deal, which includes an immediate cessation of military operations and guarantees freedom of navigation through the Strait of Hormuz, a key global energy route.

Kuwait praised mediation efforts by Pakistan and Qatar, along with other countries involved in facilitating the agreement, and called for disputes to be addressed through dialogue, mutual respect and non-interference.

Qatar said the agreement could help bring a lasting end to military operations and reaffirmed its support for diplomacy as the preferred method of resolving conflicts.

Egypt and Lebanon also welcomed the development, saying it could help reduce regional tensions and create momentum for broader negotiations.

Egypt described the agreement as an important step toward restoring regional and international stability and said it hoped the end of the conflict would support wider diplomatic efforts in the Middle East.

Lebanon’s Parliament Speaker Nabih Berri said the agreement could contribute to regional security and stability, while praising mediation efforts by Pakistan, Qatar, Saudi Arabia and Egypt.

Türkiye also described the deal as a significant development that could strengthen peace and stability across the region.

The Gulf Cooperation Council welcomed the signing of the memorandum and expressed hope that it would lead to a lasting agreement and greater regional security.

Jordan said the start of negotiations toward a permanent settlement was an important step for restoring regional and international security.

The United States and Iran announced the agreement after more than three months of conflict. US President Donald Trump said he had authorized an end to the US naval blockade of Iranian ports in the Strait of Hormuz.

Details of the agreement were not immediately released, while further negotiations, including discussions related to Iran’s nuclear program, are expected to continue.

The limited movement highlighted continued caution among shipping companies, which welcomed the agreement but are awaiting further details, including safety measures and possible mine clearance operations in the strait.

Global oil prices fell about 4 percent on Monday as markets reacted to expectations that the United States and Iran would formally sign a memorandum of understanding in Switzerland outlining steps to resume shipping.The Strait of Hormuz, a vital route for global energy supplies, has seen sharply reduced traffic since the conflict between the United States, Israel and Iran began on February 28.

The LNG tanker Disha, carrying a cargo from Qatar’s Ras Laffan, had remained west of the strait before crossing, according to data from Kpler and LSEG. The shipment is expected to be delivered to India’s Dahej terminal, a source familiar with the matter said.

Shiptracking data showed about 155 oil and chemical tankers were in the Middle East Gulf area on June 15, down from 201 at the end of May.Shipping analysts said confidence would likely return gradually as vessels resume regular movements through the waterway.

Anoop Singh, global head of shipping research at Oil Brokerage, said wider shipping activity would need time to recover and freight rates could remain elevated while operators assess risks.The Japanese Shipowners’ Association said it welcomed the agreement but wanted more concrete information before recommending that vessels return to normal operations.

Japanese shipping companies also said they would only resume navigation after safety conditions were fully confirmed.The Strait of Hormuz handles a significant share of global oil and LNG shipments, making its reopening a key factor for energy markets and international trade.

Guterres said the deal, which includes a permanent ceasefire and the reopening of the Strait of Hormuz, could help build momentum toward a broader and lasting resolution between the parties.

He urged all sides to “redouble their efforts” to achieve a comprehensive settlement, adding that the United Nations stands ready to support implementation of any future agreements.

The UN chief also expressed appreciation for the role played by several regional actors, including Pakistan, Qatar, Egypt, Saudi Arabia and Türkiye, saying their involvement was “constructive” in facilitating negotiations.

The statement came as global reactions to the agreement continued, with European leaders indicating readiness to lift sanctions on Iran in response to progress on its nuclear program, while emphasizing that Tehran must not obtain a nuclear weapon.

A joint statement by European countries including the United Kingdom, France, Germany and Italy said they were prepared to coordinate with the United States, Iran and the International Atomic Energy Agency on verification measures linked to the deal.

Japan also welcomed the agreement, with Prime Minister Sanae Takaichi expressing hope for its steady implementation and calling for guaranteed free and safe navigation through the Strait of Hormuz.

The Strait, a key global energy shipping route, is expected to reopen under the terms of the ceasefire, marking a significant development in regional maritime security and global oil flows.

S President Donald Trump is expected to meet Egyptian President Abdel Fattah El-Sisi on the sidelines of the G7 summit in France this week, with discussions set to focus on geopolitical crises and their impact on trade, energy and global supply chains, Egypt’s presidency said on Sunday.

The Egyptian presidency said El-Sisi would hold several meetings with world leaders during the summit, including a bilateral meeting with Trump.

The talks will take place as leaders gather in Evian from June 15 to 17 for a summit hosted by French President Emmanuel Macron, with the Middle East conflict among the main issues on the agenda.

The French presidency said Macron had invited leaders from Egypt, Saudi Arabia, Qatar and the United Arab Emirates to discuss regional developments linked to the war in the Middle East.

The G7 meeting comes after the United States and Israel launched a war against Iran in late February, escalating tensions in the region and increasing pressure on international energy routes.

Egyptian officials said El-Sisi’s meetings would address efforts to resolve international crises and manage their economic consequences, including disruptions affecting trade flows, energy markets and supply chains.

Saudi Crown Prince Mohammed bin Salman will not attend the summit because of prior commitments, according to the Saudi Press Agency.

The G7 includes leaders from Britain, Canada, France, Germany, Italy, Japan and the United States, along with invited representatives from countries including Brazil and India.

Macron was scheduled to arrive in Evian on Sunday evening, while Trump and other leaders were expected on Monday.

The summit agenda includes discussions on ending the Iran conflict and reopening the Strait of Hormuz, a major global shipping route affected by regional tensions

The statement came after Israel said it had carried out strikes against Iran-backed Hezbollah targets in Beirut’s southern suburbs, further complicating efforts to end the wider Middle East conflict.

Iranian chief negotiator Mohammad Bagher Ghalibaf said the strikes showed that the United States either lacked the willingness or ability to implement its commitments.

“If you do not have the will or the ability to fulfil your commitments, then there is no point in talking about continuing down this path,” Ghalibaf said in a statement on social media.

Trump had previously said an agreement with Iran was expected to be signed soon and that the Strait of Hormuz would reopen immediately after the deal. Iran, however, has given a less certain timeline.

Iran has insisted that any agreement must also address the conflict in Lebanon, where Hezbollah has been involved in fighting with Israel. Iranian Brig. Gen. Mohammad Jafar Asadi said Israeli strikes “will not go unanswered.”

A US official said the proposed agreement included Lebanon, which became involved in the wider conflict after Hezbollah launched rockets toward Israel.
Pakistan and Qatar have acted as mediators in the negotiations. A Qatari delegation arrived in Tehran on Sunday to help facilitate the finalisation of a possible agreement, according to a diplomat familiar with the matter.

The parties have given different accounts of the proposed deal, including disagreements over the future of Iran’s nuclear programme and control of the Strait of Hormuz.

Iran has said it will maintain authority over the strategic waterway, while Washington has rejected that position. The US has imposed a blockade affecting Iranian ports, while Iran has restricted movement through the strait.

Another major issue remains Iran’s enriched uranium stockpile. Tehran says its nuclear programme is peaceful, while Israel, the United States and other Western governments have expressed concerns over potential military use.

On Sunday, Israel issued evacuation warnings for 29 villages in southern Lebanon. Israel said its strikes in Beirut were carried out in response to Hezbollah fire toward Israeli territory.

Lebanon’s civil defence agency said at least three people were killed and six wounded in the strike. Israel’s military also said three suspected Hezbollah drones struck northern Israel but caused no casualties.

Trump is scheduled to travel to Evian for the June 15-17 summit, where leaders from the G7 countries are expected to discuss the war in Ukraine, a fragile ceasefire between Israel and Iran, trade disputes, artificial intelligence, energy security and supply chains.

A senior US administration official said Trump would participate in a working session on Tuesday with G7 leaders and Zelensky as Kyiv seeks continued military and financial backing from Western allies.

No formal bilateral meeting between Trump and Zelensky has been scheduled, though officials said the two leaders could hold talks on the sidelines of the summit.

US officials said Russian battlefield gains had slowed and that Washington wanted the conflict to end as quickly as possible.

Trump is also expected to hold separate meetings with leaders from Egypt, Qatar, the United Arab Emirates, India and France.

The summit is likely to focus heavily on efforts to maintain a ceasefire between Israel and Iran following weeks of fighting. US officials said discussions may include possible French and British involvement in mine-clearing operations around the Strait of Hormuz, a key route for global energy shipments.

Economic issues will also feature, including trade tensions, supply-chain security, illegal migration and artificial intelligence. The US administration said Trump would emphasize securing critical mineral supplies needed for advanced technologies.

The G7 summit will bring together leaders from the United States, Canada, Britain, France, Germany, Italy and Japan. Trump has previously supported Russia returning to the group, from which Moscow was suspended after the 2014 annexation of Crimea.

After the summit, Trump is expected to attend a dinner hosted by French President Emmanuel Macron at the Palace of Versailles before returning to Washington.

Saudi Arabia, the United Arab Emirates, Qatar, Egypt, Jordan and the Gulf Cooperation Council (GCC) issued statements denouncing the strikes and expressing solidarity with Kuwait and Bahrain.

The GCC called the attacks an “unacceptable hostile policy,” while Secretary-General Jasem Mohamed Albudaiwi said the strikes represented a dangerous escalation threatening regional and international security.

Iran claimed responsibility for attacks on U.S. military assets in Kuwait and Bahrain, including facilities linked to the U.S. Fifth Fleet. Kuwaiti authorities said missile strikes caused significant damage at Kuwait International Airport, temporarily disrupting operations before flights resumed later in the day.