US and Iran begin peace talks in Switzerland as Hormuz standoff continues

The promise of diplomacy in Switzerland collided with a still-choked oil artery as U.S. and Iranian officials opened peace talks while the Strait of Hormuz remained at the center of a widening standoff. JD Vance arrived in the Burgenstock area near Zurich on Sunday to join Iranian negotiators, even as Tehran said the waterway was closed and Washington insisted commercial shipping was still moving.

The Iranian delegation included Foreign Minister Abbas Araqchi and chief negotiator Mohammad Baqer Qalibaf. U.S. officials said the talks were meant to build out an initial peace understanding, but the agenda was quickly overtaken by Lebanon, where Tehran has tied any durable deal to an end to Israeli strikes. U.S. Central Command said Iran does not control the Strait of Hormuz, underscoring the gap between Tehran’s political message and the operational reality at sea.

That gap matters because Hormuz is one of the world’s most critical energy chokepoints. The International Energy Agency says the strait is the primary export route for oil from Saudi Arabia, the United Arab Emirates, Kuwait, Qatar, Iraq, Bahrain and Iran. The U.S. Energy Information Administration says oil flows through the passage averaged about 21 million barrels per day in 2022, roughly 21% of global petroleum liquids consumption. UNCTAD said in March 2026 that the strait carried around a quarter of global seaborne oil trade, along with significant volumes of LNG and fertilizers.

The shipping risk was already visible before the latest round of talks. IMF PortWatch says traffic through the Strait of Hormuz has been reduced since February 28, 2026, after attacks on commercial ships pushed carriers away from the route. The uncertainty carries added weight because the strait links the Persian Gulf to the Gulf of Oman and the Arabian Sea, leaving global energy markets exposed to any escalation or miscalculation.

Lebanon remained the other pressure point in the negotiations. Lebanese state media reported that Israeli strikes in southern Lebanon killed at least seven people, including two children, despite a ceasefire announcement. CNN reported that Iranian officials were insisting they would not make a deal unless Israel stopped the strikes, while BBC said Iran argued the attacks breached its agreement with Washington. For now, the talks have begun, but the Strait of Hormuz is still closed in political terms and still vulnerable in strategic ones.