Iran's foreign minister Abbas Araghchi announced major progress Sunday in Swiss-mediated talks with the US to resolve the Israel-Hizbollah conflict in Lebanon and permanently settle their war. The negotiations, hosted at Bürgenstock resort, produced agreement on a de-confliction cell involving Lebanon's government to prevent escalation in the ongoing fighting.

Oil markets reacted cautiously to the diplomatic developments. Brent crude slipped 0.7 percent to $80 a barrel during Asian trading, while equity markets showed mixed results. Japan's Topix rose 1 percent and Korea's Kospi gained 1.7 percent, though S&P 500 futures edged down 0.2 percent. The Strait of Hormuz handles roughly a fifth of global oil and gas shipments, making any disruption economically significant.

The talks build on a memorandum of understanding signed earlier this month extending a April 8 ceasefire for 60 days. Under that deal, Iran agreed to reopen the strait and waive transit fees while receiving some frozen asset releases. President Donald Trump has prioritized restoring the waterway's flow to address energy price pressures ahead of November midterms.

Parallel nuclear negotiations will stretch over weeks as both sides debate handling of Iran's 9,000kg uranium stockpile, including 440kg at near-weapons-grade levels. US Vice President JD Vance leads the American delegation in Switzerland, though officials provided limited comment on the discussions.