US, Iran enter technical talks to secure peace deal, shipping restart

1 Jul 2026, 11:08 AM
US, Iran enter technical talks to secure peace deal, shipping restart

DOHA/DUBAI, July 1 — The United States (US) and Iran held technical talks in Doha on Wednesday as they seek to agree on the flow of shipping through the Strait of Hormuz and secure a lasting ceasefire, a source with direct knowledge of the talks and an Iranian official said.

US President Donald Trump's son-in-law Jared Kushner and envoy Steve Witkoff met the prime minister of Qatar — a mediator in the talks alongside Pakistan — to lay the groundwork for the negotiations, but would not be attending the discussions themselves, the source with direct knowledge of the talks said.

The talks are based on a 14-point interim accord signed last month that was meant to halt the war that began with US-Israeli strikes on Iran in February and reopen the Strait of Hormuz, while setting up 60 days of negotiations for a permanent peace deal.

However, the US and Iran have sparred publicly over the meaning of the interim pact, leading to tit-for-tat military strikes over the past week.

Iran is determined to win international recognition of its control over the strait and its ability to levy fees on ships entering or leaving the Gulf, even if it has to do so by force, two senior Iranian sources said on Wednesday.

Traffic has partially resumed through the strait, which handled one-fifth of global oil and liquefied natural gas trade before the war.

People walk near an anti-United States mural in Tehran, Iran, on June 30, 2026. — Picture by REUTERS/WEST ASIA NEWS AGENCY

Focus on Hormuz, frozen assets

The talks in Doha are structured as sessions between chief negotiators and specialists, the source with knowledge of the talks said. They began on Tuesday night and were continuing on Wednesday, said the Iranian official.

Iran has publicly stated that its priorities include agreeing on the management of the strait and the release of US$6 billion (RM24.56 billion) in Iranian frozen assets, and an Iranian official said the current round of discussions would focus on those two issues.

The stated priority of the US is to ensure the free flow of traffic through the strait, the source with knowledge of the talks said.

Iran's state media said on Wednesday a foreign container ship had run aground in the Strait of Hormuz after entering shallow waters outside the shipping route designated by Iranian authorities.

"Hormuz continues to reopen, but it is patchy, unpredictable, and not fully transparent," said oil market analysis provider Vanda Insights' founder Vandana Hari.

The war triggered Iranian attacks on Gulf states hosting US military bases and killed thousands of people, mainly in Iran and Lebanon, as well as pushing up oil and fuel prices.

An Israeli tank and an Armoured Personnel Carrier manoeuvre on the Israeli side of the Israel-Lebanon border, after crossing the border into Israel, on July 1, 2026. Picture taken with a mobile phone. — Picture by REUTERS

Intensive diplomacy on Lebanon

Trump faces political pressure to contain the economic fallout from the war before the midterm elections in November that will determine control of the US Congress. In Iran, the theocratic leadership survived the war but faces domestic anger over a shattered economy.

Oil prices, which dipped sharply in the second quarter of the year, fell more than one per cent on Wednesday.

The interim deal between the US and Iran also provides for an end to a parallel conflict between Israel and the Iran-backed militant group Hezbollah in Lebanon.

The US has backed a separate track of talks between Israel and Lebanon's government, which produced a framework security deal that Hezbollah has dismissed and analysts warn could entrench Israel's occupation of Lebanon's south.

There had been intensive diplomatic activity on Lebanon between parties, including the US, up to Tuesday evening, the source with knowledge of the talks said.

A woman holds an Iranian flag on a street in Tehran, Iran, on June 30, 2026. — Picture by REUTERS/WEST ASIA NEWS AGENCY
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