US Vice President JD Vance has indicated that high-level negotiations with Iranian officials in Switzerland have yielded significant progress, establishing what he described as a "good foundation" for a final agreement to end the conflict in the Middle East.
The comments, made on Monday afternoon following the departure of the Iranian delegation, mark a notable shift in diplomatic tone and suggest a potential pathway toward de-escalation in the region.
Vance emphasized the dual objectives of the talks, stating that while "we want Israel's security to be protected, we also want Lebanon's sovereignty to be protected.
Markets responded positively to the news, with risk assets rallying on hopes that a diplomatic resolution could reduce geopolitical premiums embedded in energy and shipping costs.
Brent crude futures softened as traders priced in a lower probability of supply disruptions linked to regional instability.
The move reflects growing investor confidence that the US and Iran are moving closer to a framework that could stabilize the broader Middle East.
Vance emphasized the dual objectives of the talks, stating that while "we want Israel's security to be protected, we also want Lebanon's sovereignty to be protected." This balanced approach underscores the complexity of the negotiations, which aim to address multiple fronts of the conflict, including the ongoing situation in Lebanon and the broader regional tensions involving Israel and Iran.