US-Iran talks in Switzerland canceled, clouding 60-day truce deal

The first round of technical talks between the US and Iran collapsed before they began, raising doubts about whether the 60-day negotiating window can deliver a lasting truce.

The first round of US-Iran technical talks scheduled for Friday at Switzerland's Bürgenstock resort was canceled, hours after the White House grounded Vice President JD Vance's delegation, casting doubt on the 60-day framework signed this week.

"The logistics of these negotiations have never been simple or predictable," a White House spokesperson said in a statement late Thursday, adding that the US looks forward to "beginning technical talks as soon as possible."

The cancellation came as the US lifted its naval blockade of Iranian ports Thursday, one of the MOU's first conditions, while three Saudi oil tankers transited the Strait of Hormuz — a chokepoint handling about 21% of global oil trade that Iran had blockaded during the conflict. Iran's Supreme National Security Council said ships must now submit passage requests to a new government body, with no fees for 60 days per the accord.

The delay threatens to unravel a fragile truce that ended five weeks of all-out war — a conflict that killed at least 7,000 people, sent crude prices surging after the Hormuz blockade choked off a fifth of global supply, and cost 13 US service members their lives. With a $300 billion reconstruction fund for Iran and oil sanctions relief on the line, each day of delay raises the risk that the ceasefire collapses back into open fighting.

Why the talks stalled

A US official told Axios the postponement may stem from Iran's objections to what it views as Israeli violations of the ceasefire in Lebanon, where Israel's military announced fresh strikes against Hezbollah targets Friday. The MOU explicitly calls for the "permanent termination" of the war in Lebanon and guarantees the country's territorial integrity, but Prime Minister Benjamin Netanyahu's government has vowed to keep troops in a southern buffer zone.

Iran's Supreme Leader Mojtaba Khamenei said Thursday he approved the MOU despite holding a "different view" on the deal, according to a written statement. "Face-to-face negotiations with the United States will be held in the future, but that does not mean accepting the enemy's point of view," he said. Iran's chief negotiator Mohammad Bagher Ghalibaf warned Friday that Tehran would give a "decisive" response if the agreement is breached.

What happens next

The MOU, signed Wednesday by President Donald Trump and Iranian President Masoud Pezeshkian, opened a 60-day window for negotiators to reach a final agreement on Iran's nuclear program. US special envoy Steve Witkoff told lawmakers in a closed-door meeting that Tehran would invite International Atomic Energy Agency inspectors to check its nuclear facilities, according to two people familiar with the conversation.

Switzerland's foreign ministry said preparatory work at Bürgenstock would continue, though no new date has been set. "Switzerland remains ready to facilitate these talks," the ministry said in a statement. The last time a major power negotiation at Bürgenstock collapsed — the 2024 Ukraine peace summit — the diplomatic vacuum was followed by intensified fighting within weeks.

For markets, the uncertainty is already priced in. Brent crude, which spiked above $120 a barrel during the Hormuz blockade, has eased but remains elevated as traders weigh the risk of a renewed conflict. Gold, a traditional safe haven, has held near recent highs. The VIX, which surged above 40 during the war's peak, has retreated but remains above its long-term average — a sign that investors are not yet pricing in a durable peace.

This article is for informational purposes only and does not constitute investment advice.