Iran and the United States have met in Switzerland for a first round of talks aimed at making a temporary cease-fire permanent. These efforts are part of a broader push by Tehran and Washington to work toward a lasting peace deal. Iran's foreign minister has reported major progress toward ending the fighting in Lebanon during high-level talks.
Oil prices have experienced volatility in response to these diplomatic developments. Prices climbed after President Donald Trump threatened renewed military action and strikes on Iran if Hezbollah keeps attacking Israel, which raised concerns about peace negotiations. However, prices retreated as signs of progress in US-Iran negotiations eased fears of ongoing supply disruptions in the Strait of Hormuz.
Simultaneously, Iran has ramped up the amount of crude oil it openly sends through the Strait of Hormuz to the highest levels since the war started. Following an interim peace deal with the U.S., the Islamic Republic has started shipping out millions of barrels, leading sellers of Iranian crude to China to slash prices.