Iran's negotiating team rejected a ceremonial handshake with US counterparts in Switzerland on Saturday, a diplomatic snub that underscores the fragility of the interim accord as Tehran reimposes its Strait of Hormuz blockade to pressure Washington on Lebanon.
Iran's negotiating team rejected a ceremonial handshake with US counterparts in Switzerland on Saturday, a diplomatic snub that underscores the fragility of the interim accord as Tehran reimposes its Strait of Hormuz blockade to pressure Washington on Lebanon.
Iran closed the Strait of Hormuz for a second day on Saturday and its delegation refused a handshake photo with US negotiators in Switzerland, signaling deepening mistrust just days after the two sides signed a 14-point memorandum of understanding to end hostilities. The Iranian delegation, led by Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Affairs Minister Abbas Araghchi, entered the Buergenstock resort venue only after the livestreamed ceremony proceeded without them, according to a source close to the team cited by Iran's Tasnim News Agency.
"The Iranian regime has a vested interest in maintaining the negotiating process under the MoU because Iran is receiving economic relief, such as sanctions waivers, as part of the agreement," the Institute for the Study of War and the American Enterprise Institute's Critical Threats Project wrote in a June 20 assessment. "Iran would almost certainly use any economic relief to try to reconstitute its defense and military capabilities and the Axis of Resistance."
Iran's Khatam ol Anbia Central Headquarters and the Islamic Revolutionary Guards Corps Navy announced Saturday that the strait — which handles about 21 percent of global oil trade — is closed until Israel stops operations in Lebanon. US Central Command spokesperson Captain Tim Hawkins countered that "Iran does not control the Strait of Hormuz" and that "traffic continues to flow," though the announcement alone pushed perceived shipping risks higher. Brent crude traded near $87 a barrel on Friday, up from $82 a week earlier, as traders priced in a renewed disruption premium.
The diplomatic standoff comes as Israel and Hezbollah continue trading fire despite agreeing to a ceasefire on June 19. Hezbollah launched 147 rockets, 20 drones and nine anti-tank guided missiles at Israeli forces in the past 24 hours, according to Israeli Ambassador to Washington Michael Leiter. The Israel Defense Forces struck more than 300 Hezbollah targets and killed over 100 fighters in two days, while four Israeli soldiers died in southern Lebanon including a battalion commander. Prime Minister Benjamin Netanyahu said Israel will remain in the IDF security zone in southern Lebanon "as long as necessary to defend our northern border."
Negotiation Leverage and Economic Stakes
The composition of Iran's delegation — which includes Central Bank Governor Abdolnaser Hemmati and Deputy Oil Minister Hamid Bord — signals that Tehran intends to prioritize economic relief in the talks, according to the ISW-CTP assessment. The MoU framework calls for sanctions waivers, unfrozen assets and a proposed $300 billion investment fund for reconstruction, though legal experts have flagged that existing US sanctions designating Iran's construction sector as IRGC-controlled may render the fund "close to impossible" without congressional action, as Fox News reported.
Iranian Foreign Ministry Spokesperson Esmail Baghaei told state media that the purpose of the talks is to "demand the fulfillment of the United States' obligations," arguing that Washington has failed to implement the MoU's first clause requiring a ceasefire on all fronts including Lebanon. He said nuclear negotiations can only proceed after that clause is implemented. International Atomic Energy Agency Director General Rafael Grossi is attending the talks, though no Iranian officials have confirmed nuclear discussions are on the agenda.
The 60-day negotiation window gives both sides room to maneuver, but the parallel escalation on the ground — Iran's Hormuz closure, Israel's expanded strikes and Hezbollah's continued rocket fire — suggests the interim deal is already under strain. The last time Iran closed the strait during the early weeks of the conflict in February, oil prices surged past $95 a barrel and global shipping costs jumped 40 percent before the initial reopening in June.
This article is for informational purposes only and does not constitute investment advice.
