Mediators hail ‘roadmap’ for final agreement

Oil prices edged lower on Monday off the back of progress announced in negotiations between Iran and the US in Switzerland.

Brent crude oil, the international benchmark, fell more than 1% to trade at $79.70 per barrel in afternoon Asian trade. It was trading at around $70 per barrel before the start of the war in late February.

“With the controversial — and fragile — US-Iran peace process now underway, attention is turning to how quickly tankers return to the Strait of Hormuz to load energy supplies,” said Thomas Mathews, head of Asia-Pacific markets at Capital Economics, in a note to investors.

Moving towards a more permanent deal will be challenging, with very real risks of a flare-up in hostilities,” ING commodities strategists Warren Patterson and Ewa Manthey in a commentary on Monday.

The Iran talks could contribute to a broader stock market rally, some analysts also said, although it remains too early to know for sure.

“Following the positive response last week to reports of a US-Iran ceasefire, markets are likely to open with a cautious tone to start the new week as it remains clear that the situation in the Middle East remains fragile,” said National Australia Bank’s head of markets research, Skye Masters.

Iran’s nuclear program was touched upon during talks with the US, Iranian Foreign Ministry spokesperson Esmail Baghaei said on Monday.

“One of the points raised by the American delegation was the presentation of its positions regarding the nuclear issue,” Baghaei said.

“A very brief discussion took place regarding the nuclear issue, but there was no discussion of details, and it cannot be said that negotiations on the nuclear issue have begun.”

Iran’s semi-official Tasnim News Agency reported nuclear talks could only get underway once other parts of the Memorandum of Understanding were agreed upon, including those relating to frozen assets and allowing the resumption of Iranian oil exports.

Lebanon’s President Joseph de-escalation said on Monday he held a phone call with US Vice President JD Vance, US presidential advisor Jared Kushner, and Qatari Prime Minister Sheikh Mohammed bin Abdulrahman Al Thani.

They discussed efforts to maintain ‌a ⁠ceasefire in Lebanon ⁠and halt Israeli ​military escalation, the Lebanese presidential office said in a statement on X.

The statement confirmed that a de-escalation mechanism had been proposed to this end.

Ending Israel’s strikes and ground operations in Lebanon has been a key sticking point for any agreement between Iran and the US.

Lebanon was not present at the Switzerland summit. The political party and militant group Hezbollah is a key ally or Iran in the region.

Talks between the US and Iran in Switzerland have laid the groundwork for a lasting deal to be reached within months, mediators and facilitators said on Monday.

“The discussions were held in a positive and constructive atmosphere and yielded encouraging progress,” said Pakistani Prime Minister Shebhaz Sharif on Monday.

He said both sides agreed on “a roadmap toward a final deal within 60 days, the establishment of a High-Level Committee to provide political oversight, and the commencement of further technical talks.”

After 18 hours of high-level, intensive negotiations between the US and Iran, summit host Switzerland said that conditions were now set for technical discussions to begin.

“Switzerland particularly welcomes the agreement on a roadmap aimed at reaching a final agreement within 60 days,” the ministry said in a statement.

“This roadmap creates the conditions for the immediate resumption of technical discussions.”

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Mediators are hoping for constructive “technical talks” to begin on Monday after the US and Iran agreed to a roadmap for a peace agreement over the weekend.

Oil prices dipped after the news, while other nations have welcomed the progress made thus far.

Some members of the Iranian delegation have departed after the 18-hour talks on Sunday.

We will be bringing you the latest updates, videos and expert analysis on the conflict in the Middle East throughout the day.