US-Iran talks move to technical phase as Lebanon fighting tests peace push

Negotiators from the US and Iran were set to engage in a second day of talks Monday to solidify a permanent end to the war between the countries, after a first day of mediation began with a rocky start.

Mediators Qatar and Pakistan hailed what they called "encouraging progress" made during the talks. A senior US diplomat claimed progress on multiple fronts, including the establishment of "mechanisms" to ensure the Strait of Hormuz, a vital waterway for global energy shipments, remains open and that a ceasefire in southern Lebanon holds.

Iran and the United States have established a direct communication line to "avoid incidents and miscommunication" in the Strait of Hormuz, mediators Qatar and Pakistan announced on Monday after the first round of high-level talks under a 14-point Memorandum of Understanding (MoU).

The joint statement issued after the Lake Lucerne Summit in Switzerland's Burgenstock stated that the talks were held in a "positive and constructive atmosphere" and produced "encouraging progress," including a roadmap aimed at securing a final agreement within 60 days.

The statement read, "In addition, a communication line between the parties has been formed for the period mentioned in paragraph 5 of the MoU to avoid incidents and miscommunication with the aim of safe passage for commercial vessels through the Strait of Hormuz."

The communication channel is tied to paragraph five of the memorandum, which states, "Upon the signing of this MoU, the Islamic Republic of Iran will make arrangements using its best efforts for the safe passage of commercial vessels with no charge, for 60 days only, from the Persian Gulf to the Sea of Oman and vice versa."

An explosion tore through Qatar's key natural gas export terminal Sunday night as workers tried to resume operations there after Iran bombed it during the war, causing a fire that hurt at least 54 people as another 18 were still missing hours later.

The blast at the Ras Laffan industrial area could cause further chaos in global energy markets, particularly as Qatar remains one of the world's top natural gas producers. Qatar shut down its production after Iran's chokehold on the Strait of Hormuz meant it couldn't get shipments out to its clients.

With Iran loosening its grip on the strait as negotiations continue over a permanent end to the war, Qatar began work to try to restart its export terminal. On Sunday night, that work sparked an explosion and fire at the Barzan gas supply facility, the state-run firm QatarEnergy said.

The scale of the damage remains unknown after the blast, with officials initially saying only a few people had been hurt. But hours later, Qatar's Interior Ministry offered the far-greater casualty figures.

Iran's Foreign Minister Abbas Araghchi said Monday there was "major progress" in talks with the United States.

"Pakistani and Qatari mediation has delivered major progress to end Lebanon War," Araghchi posted on X.

"Oil and petrochem exports are waived, blockade lifted, some frozen assets released, and major reconstruction & development plan launched for Iran."

Oil prices were mixed in Asian trading Monday as markets weighed fresh Middle East de-escalation signals against lingering supply and security risks, with WTI edging up while Brent fell sharply and Murban also slipped, as of 10:33 am Tokyo time on June 22, 2026.

WTI crude was quoted at $75.91 a barrel, up 6 cents or 0.08%.

Brent crude, the global benchmark, stood at $79.71, down 86 cents or 1.07%, while Murban crude was at $73.63, down 30 cents or 0.41%.

The market reaction came after Iran’s military joint command said it was halting offensive operations against Israel, following hours of retaliatory strikes that had raised fears of a broader regional conflict.

Iran and the United States have agreed to set up a "de-confliction cell" with Lebanon to stop military operations, mediators Pakistan and Qatar said in a joint statement on Monday.

"The parties agreed on the creation of a de-confliction cell, between the parties, the Lebanese Republic and facilitated by the Mediators, to ensure the adherence of the termination of military operations in Lebanon," the joint statement read.

Iran and the United States agreed on a roadmap towards reaching a final deal to end the war within 60 days, meditors Pakistan and Qatar said in a joint statement on Monday.

"The High Level Committee has agreed upon a roadmap towards reaching a final deal within 60 days, laying the foundation for the immediate commencement of further technical talks," the joint statement read.

The first round of direct US-Iran talks since deal expected to continue through the night. US President Donald Trump, who is not at the talks, had earlier exchanged warnings with Iran's negotiator over clashes between Israel and Hezbollah in Lebanon.

The foreign ministers of Egypt, Saudi Arabia, Türkiye and Pakistan, emphasised that the US-Iran agreement should take into account the csecurity and stability of countries across the region.

In a joint statement after a consultative meeting held in Cairo, the ministers described it as "a constructive step towards de-escalation and towards ending a conflict which posed significant risks to regional security and stability, as well as to energy markets, international maritime routes, global supply chains, and international trade." Building on the memorandum of understanding, the ministers emphasised the need for a swift conclusion to the next phase of negotiations to reach "a lasting, verifiable, and mutually acceptable solution" to the remaining issues.

Iraq is pressing ahead with plans to export crude oil through Syria's Mediterranean coast even as shipping through the Strait of Hormuz gradually returns to normal, underscoring how this year's Gulf crisis has permanently reshaped energy security calculations across the Middle East.

The move follows the disruption caused by the temporary closure of the Strait of Hormuz during the U.S.-Iran conflict, which exposed Iraq's heavy dependence on a single maritime chokepoint. Iraqi officials told Reuters that Baghdad intends to maintain the new export corridor through Syria's port of Baniyas as a permanent alternative rather than merely an emergency contingency.

The decision reflects a broader strategic lesson from the conflict: even if Hormuz is reopened, countries that rely on it are no longer willing to assume the world's most important oil shipping lane will always remain accessible.

Iraq, the second-largest producer in OPEC, typically exports about 3.6 million barrels of crude oil per day, with roughly 3.4 million barrels traditionally shipped through its southern Gulf terminals connected to the Strait of Hormuz. When the waterway was effectively closed earlier this year, exports slowed sharply and crude inventories accumulated as storage facilities filled.

To reduce that vulnerability, Baghdad is developing an alternative outlet through Syria. Initial crude exports from the Mediterranean port of Baniyas are expected to begin as early as July at around 50,000 barrels per day, while fuel oil is already being trucked across the border for shipment to buyers in Europe and Africa. Syrian authorities are expanding storage and unloading facilities at Baniyas to accommodate higher export volumes.

The Iranian military’s joint command said that it is halting its offensive operations hours after Israel and Iran began trading fire early Monday in retaliatory strikes that threatened to drag the wider Middle East back into a full-scale regional war.

Israel struck Iran on Monday after being targeted by missiles, while a U.S. military base in Saudi Arabia came under fire in the most serious exchange of hostilities since an April ceasefire, raising the possibility of a return to heavy fighting and complicating mediation efforts to end the war, AP reported.

In a brief statement, Netanyahu said the fighting has stopped “after we hit the terror regime in Tehran.” But he said, “If the terror regime in Iran makes the mistake and returns to attacking us, we will respond with force.”

Netanyahu also said that Israel is continuing to operate against Iran’s ally, the Lebanese militant group Hezbollah, and that Israel “has full right to self-defense and we will exercise it to the full extent necessary.”

Day 114: Iranian military says halting offensive vs Israel

Day 113: Trump threatens US tolls on Hormuz strait if Iran talks fail

Day 112: Israeli strike hits south Lebanon despite truce deal

Day 111: Iran leader approves US deal despite 'different view'

Day 110: Trump signs surprise interim deal with Iran to pause war