The Swiss foreign ministry confirmed that the planned talks between the United States and Iran will proceed in the Buergenstock mountaintop resort, following the evening’s ceasefire agreement. According to the ministry’s statement, the U.S. and Iran, together with mediators from Pakistan and Qatar and other involved parties, are set to meet the following day at Buergenstock for initial negotiations to implement the agreement. No further details on the schedule have been released at this time.
Context of the Agreement
The memorandum of understanding extends the April ceasefire by another 60 days, including the region of Lebanon, to facilitate final truce negotiations. It also calls for the full resumption of maritime traffic through the Strait of Hormuz without charges, the lifting of U.S. sanctions on Iran, the unfreezing of Iranian assets, and the establishment of a $300 billion post‑war reconstruction fund.
While Saudi and Persian Gulf states welcomed the lifting of the U.S. naval blockade and the potential for restored oil flows, Tehran stipulated that the point after the 60‑day toll‑free period, it will charge ships transiting the Hormuz waterway. Lead Iranian negotiator Mohammad Bagher Ghalibaf confirmed that the strait would not return to pre‑war conditions, and that transit fees would apply.
Reactions
United States President Donald Trump, who had earlier signaled war escalation, expressed a willingness to crack down on Iran again if the agreement is not honoured. “We’ll bomb the hell out of them if they violate the agreement,” Trump said at a press briefing.
Pakistani Prime Minister Shehbaz Sharif hailed the deal as a “milestone” and reiterated Iran’s commitment to reopen the Strait of Hormuz immediately, alongside the U.S. lifting its naval blockade. Other world leaders, including French President Emmanuel Macron and officials from the G7, welcomed the agreement as a historic step toward stabilising global energy supplies.
The U.S. and Iranian presidents digitally signed the interim document in both English and Persian, with the agreement already in effect as of the previous day. Iran also reaffirmed its commitment not to develop nuclear weapons and to begin on‑site down‑blending of its enriched uranium stockpile.
Economic Impact
Oil prices dipped following the announcement of the agreement, with Brent crude futures falling below $80 for the first time since the conflict began. However, they soon recovered, reflecting the market’s uncertainty over potential renewed tensions.
