Lebanon Ceasefire Agreed After US-Iran Talks in Switzerland Scrapped

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.-Iran talks in Switzerland planned for Friday were cancelled as fighting flared in Lebanon, creating new uncertainty about the timing of negotiations vital to ensure the reopening of the Strait of Hormuz to global shipping.

A senior U.S. official said just before 4 p.m. Lebanon time (1300 GMT) that a ceasefire would come into effect at that time.

“We understand that after the exchange of fire earlier today, Israel and Hezbollah are now in a ceasefire,” the official said on background, adding that negotiators for the U.S. and Qataris worked out the agreement with help from Iran.

Condition for Broader Accord

Two sources from Iran-aligned Hezbollah said the group had “applied it from our end”.

A senior Israeli official confirmed his country was in a ceasefire, adding: “If Hezbollah does not attack us, then for us it is not a time of war.”

The official also said Israel would keep its forces in southern Lebanon, where it has occupied an area along Israel’s northern border.

The conflict in Lebanon, in which 18 people were killed in airstrikes overnight and four Israeli soldiers were killed by Hezbollah militants, could weigh on negotiations because ending fighting there is a condition for the broader U.S.-Iran accord.

Tough Issues Still Unresolved

The 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 U.S. Vice President JD Vance said on Thursday he had dropped plans to attend, two people familiar with the matter told Reuters.

Earlier on Thursday, a source familiar with Tehran’s thinking had said Iran’s lead negotiator, Mohammad Baqer Qalibaf, was not planning to attend.

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

But Hezbollah lawmaker Hassan Fadlallah cited Iran as saying further talks depended on a comprehensive ceasefire being in place and said Lebanon’s government should reject direct negotiations with Israel as long as Israeli attacks continue.

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.

Heavy Airstrikes

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.

Lebanon’s health ministry said 18 people had been killed and 33 wounded in heavy airstrikes in 11 southern towns since midnight, and that the toll was expected to rise.

The Israeli military said four soldiers had been killed in an incident in Lebanon, without giving further details.

It said it had carried out strikes targeting what it described as Hezbollah operatives and infrastructure across several areas of the south, saying these were in response to repeated ceasefire violations by the Iran-backed group.

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

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.

Oil prices have dipped since the interim deal was signed as tankers are again moving through the Strait of Hormuz, which 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 to use the waterway during the 60-day negotiation period under the interim deal.

Iran’s foreign ministry spokesman said shipping through the strait was continuing and that Iranian armed forces had taken the necessary measures to ensure safe passage of commercial vessels.

The memorandum signed this week 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.

The deal gives negotiators 60 days to agree on the status of Iran’s nuclear programme, unless an extension is agreed, and to set up 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!”

Pressed on “The Axios Show” on why the deal fell short of his original demands, Trump said the outcome would amount to “unconditional surrender” by Iran as well as “regime change”.

(Reporting by Reuters bureaus, Writing by Clarence Fernandez and Timothy Heritage; Editing by Raju Gopalakrishnan, Philippa Fletcher and Alison Williams)

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