US envoy Steve Witkoff and Iranian Foreign Minister Abbas Araqchi were both headed to Switzerland for talks, Axios said on Friday, as a ceasefire in Lebanon appeared to revive efforts to turn an interim Iran war pact ​into a lasting regional deal, Reuters reported.

Israel and Hezbollah agreed to a ceasefire in Lebanon on Friday after escalating fighting cast doubt over U.S.-Iran talks critical to reopening the Strait of Hormuz ‌and stabilising oil supplies.

That followed a 14-point memorandum the two sides signed this week to halt fighting and open a 60-day window to resolve disputes over Iran’s nuclear program, as well as other thorny issues needed to forge a more durable deal.

U.S. Vice President JD Vance canceled plans on Thursday to travel to Switzerland for the talks, however, amid rising tension in Lebanon between Israel and Hezbollah, a militant group backed by Iran.

With the ceasefire in place, Witkoff is heading to Switzerland to join Jared Kushner, President ​Donald Trump’s son-in-law, who is already there, Axios said. Araqchi plans to travel there on Saturday, it added.

The development may signal that both sides intend to begin technical negotiations aimed at securing a permanent ​truce.

The White House did not respond to questions about Witkoff’s travel.

A senior U.S. official said the ceasefire took effect around 4 p.m. (1300 GMT) in Lebanon following an ⁠exchange of fire, adding that negotiators for the United States and Qatar had worked out the agreement with help from Iran, read the report.

Two sources from Hezbollah and a senior Israeli official confirmed the ceasefire to Reuters.

“If Hezbollah does not ​attack us, then for us it is not a time of war,” the Israeli official said, adding that Israel would keep its forces in southern Lebanon, where it has occupied an area along its northern border.

Two Lebanese security ​sources said Israel had carried out a dozen airstrikes in the first hour of the ceasefire but none were recorded after 5 p.m.

Lebanon’s health ministry said Israeli strikes after midnight into Friday had killed 47 people and wounded 97, while the Israeli military said four soldiers had been killed in an incident in Lebanon, without giving further details.

The conflict in Lebanon could weigh on negotiations because ending fighting there is a condition for the broader U.S.-Iran accord.

Following Wednesday’s signing of the memorandum of understanding, preparations ​for technical talks at the Swiss mountaintop resort of Buergenstock were well advanced when the White House said on Thursday that Vance would not attend.

The Swiss foreign ministry said the talks had been postponed but Switzerland stood ready ​to facilitate them and preparatory work was continuing.

The broad interim deal requires the United States, Iran and their allies to declare an immediate and permanent termination of military operations on all fronts, including in Lebanon.

Israel, left out of the talks, says ‌it is ⁠not party to the deal.

Araqchi, in a telephone call with his Pakistani counterpart on Friday, said the United States would be responsible for any violation of its commitments under the deal, including ending the fighting in Lebanon, his ministry said.

Lebanon was sucked into the regional war when Hezbollah opened fire at Israel on March 2, prompting it to launch an offensive against the group and invade the south of the country.

Lebanese President Joseph Aoun condemned the latest Israeli attacks but said the escalation would not hinder efforts to reach a comprehensive ceasefire.

The U.S. State Department said Secretary of State Marco Rubio spoke to Aoun and reiterated the need to disarm ​Hezbollah, while reaffirming U.S. support for a “fully sovereign” Lebanese state.

It ​said they also discussed holding a next round ⁠of Israel-Lebanon negotiations in Washington from June 23 to June 25. The Lebanese presidency said a comprehensive ceasefire was a fundamental pillar for these talks.

The Iran war, which began on February 28 with U.S. and Israeli air attacks on Iran, has killed at least 7,000 people, mostly in Iran and Lebanon. It also ​pushed up energy prices, stoking inflation worldwide.

Brent crude ticked higher on Friday, but was set for a weekly fall of about 8% after the Lebanon ceasefire, and oil ​shipments through the Strait of ⁠Hormuz picked up after the signing of this week’s deal.

The strait carried nearly a fifth of global crude oil and liquefied natural gas supplies before it was blockaded by Iran during the war.

The body set up by Iran to manage the strait said on Friday it would waive planned fees during the interim deal’s negotiation period.

The MoU foresees relief for Iran from economic sanctions, the unfreezing of assets worth tens of billions of dollars and immediate U.S. waivers for its exports ⁠of oil. It ​also provides for a $300-billion reconstruction fund for Iran and other financial incentives.

Trump again defended the deal after criticism in Washington, including some ​from Republican allies in Congress who question whether he conceded too much to end a war unpopular with most Americans ahead of midterm elections in November.

“The War has diminished Iran!” he wrote on social media on Friday, adding, “We didn’t meet out of desperation, Iran did. They ​are FINISHED! We’ll play out the 60 days. They get no money, not 10 cents!”

Switzerland said U.S. talks with Iranian negotiators on a pact to end the Middle East conflict, would not take place on Friday, as Vice President JD Vance dropped plans to travel to Geneva, adding to uncertainty whether a lasting truce can be ​found, Reuters reported.

“The logistics of these negotiations have never been simple or predictable,” the White House spokesperson said in a statement on Thursday night. Vance and the U.S. delegation had been ready ‌to depart as soon as plans were finalised.

The talks, set for the mountaintop resort of Burgenstock, would not take place, Switzerland’s foreign ministry confirmed, but gave no details.

There was no immediate response from Iran, which had earlier said it was ready to begin technical talks after Wednesday’s 14-point accord extended a tenuous ceasefire by at least 60 days.

Iran’s negotiators first needed to see signs of the U.S. implementing the interim deal, and there was no confirmation its delegation would travel to Geneva, the semi-official Tasnim ​news agency said before Vance’s Thursday announcement.

U.S. officials had also said they would hold a formal signing ceremony for the U.S.-Iran agreement in Switzerland, but Iran’s foreign ministry had cast doubt on ​the plan, calling it unnecessary after both countries’ presidents signed the pact.

The war, which began on February 28 with U.S. and Israel air attacks on Iran, has ⁠killed at least 7,000 people, sent energy prices soaring and shaken global markets.

Israel, left out of the peace talks, has distanced itself from the U.S.-Iran accord and kept up fighting against the Iranian-allied Hezbollah militant group in Lebanon, also raising questions about whether ​the agreement would hold.

In Washington, some of U.S. President Donald Trump’s Republican allies in Congress questioned whether he had conceded too much in order to end the conflict, unpopular with most Americans in the run-up to ​mid-term elections in November, read the report.

Trump had sworn to end the war only with Iran’s “UNCONDITIONAL SURRENDER.”

But the memorandum signed with Iran instead provides relief from economic sanctions, unfreezes assets worth tens of billions of dollars and immediate U.S. waivers for its exports of oil.

Iran’s Supreme Leader Ayatollah Mojtaba Khamenei said Trump had signed the deal “out of desperation” and signalled that approaching talks over Iran’s nuclear program, among Trump’s stated reasons for starting the war, would not be easy.

“If the American side wants to be too demanding, we ​will not accept it,” he said in a message.

The deal gives negotiators 60 days to agree on the status of Iran’s nuclear program, unless an extension is agreed, and set up a $300 billion reconstruction fund for Iran ​and other financial incentives.

Vance said Washington would also seek to limit Iran’s long-range missiles.

The growing cost of the war also drew the spotlight, as the U.S. defence department told lawmakers it needed $80 billion to cover the costs and some ‌unrelated bills, the ⁠Wall Street Journal said.

When the U.S. and Israel launched the war nearly four months ago, Trump said he aimed to destroy Iran’s nuclear capabilities to ensure it could never develop such weapons.

He also sought to end Tehran’s ability to strike its neighbours, prevent it from backing allied anti-Israel militants in the region and make it possible for Iranians to topple their theocratic government.

None of those objectives had been met when Trump signed the agreement, in which Iran restated its decades-long assertion not get or develop nuclear weapons, a position doubted by a succession of U.S. presidents, Reuters reported.

It also agreed to the onsite “down blending” of its highly enriched uranium stockpile and inspections by the International Atomic ​Energy Agency as a Non-Proliferation Treaty member, rejecting Trump’s ​wish to remove the material from the country.

U.S. ⁠officials say the negotiations could still yield a strong agreement on Iran’s nuclear program, aiming to better one dating from 2015 between Iran, the U.S. and other countries that Trump tore up in his first term.

But critics say Iran is in a stronger position now, having withstood a superpower attack, demonstrated its control of the Strait ​of Hormuz and gained valuable waivers to financial sanctions.

Iran has said it will still exert control over Hormuz in partnership with Oman, its neighbour across ​the critical waterway, and intends ⁠to charge ships service fees that did not exist before the war, although not during the 60-day talks.

Oil prices dipped on Friday as prospects brightened for more supply after tankers began moving through the reopening Strait, which had carried nearly a fifth of global crude oil and liquefied natural gas supplies before the war.

In Lebanon, where more than a million people have been displaced by the fighting, fresh Israeli strikes on Friday killed at least 15, the state ⁠news agency NNA ​said, in attacks Israel said were directed at Hezbollah targets.

That raised doubt about how far Trump will go to force his ​wartime ally to halt an offensive he has now pledged to end.

The deal calls for “permanent termination” of the war in Lebanon, but Israel has said it has no intention of withdrawing, instead depicting an expanded occupation zone in a new map.

Trump has become openly critical of ​Israel’s operations in Lebanon, opening one of the biggest rifts between the two countries in decades.

The United States on Wednesday read out the text of the interim U.S.-Iran agreement to halt the war in Iran and open the Strait of Hormuz.

The agreement, read to reporters by a senior U.S. official, outlines in 14 points a high-level understanding that defers many of the most difficult issues, such as how to wind down Iran’s nuclear program, until a final deal is reached. It paves the way for a broader 60-day negotiation period due to begin in Switzerland on Friday, Reuters reported.

Here is the ​full document, titled “Islamabad Memorandum of Understanding between the United States of America and the Islamic Republic of Iran”, as it was read out:

1. The United States of America and the Islamic Republic of Iran and their allies in the ‌current war, by signing this MOU (Memorandum of Understanding), declare the immediate and permanent termination of military operations on all fronts, including in Lebanon, and undertake from now on not to initiate any war or any military operation against each other, and to refrain from the threat or use of force against each other, and ensuring the territorial integrity and sovereignty of Lebanon. The final deal will confirm the permanent termination of the war on all fronts, including in Lebanon, and other provisions of this paragraph.

2. The United States of America and the Islamic Republic of Iran undertake to respect each other’s sovereignty and territorial integrity, and to refrain from interfering ​in each other’s internal affairs.

3. The United States of America and the Islamic Republic of Iran commit to negotiating and achieving the final deal in maximum 60 days extendable with mutual consent.

4. Immediately upon the signing of this MOU, the United States ​of America will begin the removal of its naval blockade and any disturbances or impediments against the Islamic Republic of Iran, and will fully end the naval blockade within 30 days. During this period, ⁠the traffic of vessels will be in proportion to the numbers of pre-war traffic being restored by the Islamic Republic of Iran. The United States of America further undertakes to remove its forces from the proximity of the Islamic Republic of Iran within 30 days after the ​final deal.

5. 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. The ​traffic of commercial vessels will immediately start and, considering the need for removing the technical and military obstacles and de-mining by the Islamic Republic of Iran, will be instated within 30 days. The Islamic Republic of Iran will conduct dialog with the Sultanate of Oman to define the future administration and maritime services in the Strait of Hormuz, in discussion with other Persian Gulf littoral states in line with the applicable international law and the sovereign rights of coastal states of the Strait of Hormuz.

6. The United States of America undertakes with regional partners to develop a definitive, mutually agreed plan with at least USD 300 billion for the ​reconstruction and economic development of the Islamic Republic of Iran. The mechanism for the implementation of this plan will be finalized as part of final deal within 60 days. All required licenses, waivers, and permissions needed for the relevant financial transactions will be granted by the United ​States of America.

7. The United States of America undertakes to terminate all types of sanctions against the Islamic Republic of Iran, including the United Nations Security Council resolutions, i.e. IAEA Board of Governors resolutions, and all unilateral U.S. sanctions, primary and secondary, in an agreed upon schedule as part of the ‌final deal. The ⁠Islamic Republic of Iran and the United States of America acknowledge the critical importance of the sanctions termination issue above mentioned and express their intentions to immediately address these issues in the negotiations in order to achieve mutual agreement on them.

8. The Islamic Republic of Iran reaffirms that it shall not procure or develop nuclear weapons. The United States of America and the Islamic Republic of Iran have agreed to resolve the disposition of stockpiled enriched material pursuant to a mechanism that will be mutually agreed upon, in accordance with the schedule mentioned in paragraph seven with the minimum methodology to be down blending on site under the supervision of the IAEA. The two parties also agreed to discuss the issue of enrichment and other mutually agreed matters related to the Islamic Republic of Iran’s nuclear needs, based on a satisfactory framework being agreed upon ​in the final deal. The final deal will confirm the provisions ​of this paragraph. The United States of America and the ⁠Islamic Republic of Iran acknowledge the critical importance of the nuclear issues above mentioned and express their intention to immediately address these issues in the negotiations in order to achieve mutual agreement on them.

9. Pending the final deal, the United States of America and the Islamic Republic of Iran agree to maintain the status quo. The Islamic Republic of Iran will maintain the current status quo of its nuclear program and ​the United States of America will not impose any new sanctions and will not deploy additional forces in the region.

10. The United States of America undertakes that immediately upon the signing of this ​MOU and until the termination of sanctions, ⁠S. Department of Treasury will issue waivers for the export of Iranian crude oil, petroleum products, and derivatives, and all associated services, including banking transactions, insurances, transportation, etc.

11. The United States of America undertakes to make fully available for use the frozen or restricted funds and assets of the Islamic Republic of Iran. Upon the implementation of this MOU, the United States of America and the Islamic Republic of Iran will mutually agree on the procedures related to the release of these funds during the negotiation. Such funds, whether retained in the original account or transferred, shall be made fully usable ⁠for payment to ​any ultimate beneficiary designated by the Central Bank of the Islamic Republic of Iran. The United States of America undertakes to issue all necessary licenses and authorizations accordingly.

12. ​The United States of America and the Islamic Republic of Iran agree that an executive mechanism will be established to monitor the successful implementation of this MOU and the future compliance of the final deal.

13. After signing this MOU, and subject to the beginning of the implementation of paragraphs 1,4,5,10 and 11 of this MOU, and the continuing ​implementation of these measures, the United States of America and the Islamic Republic of Iran will start negotiations regarding the final deal exclusively on the other paragraphs.

14. The final deal will be endorsed by a binding UNSC resolution.