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U.S. relaxes Iran sanctions following talks; Lebanon violence eases

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The United States on Monday suspended sanctions on Iran for 60 days after the first negotiations under a new peace pact, as officials reported a continued pause in fighting in Lebanon under the agreement to end hostilities across the region.

The developments came after a weekend that threatened to jeopardise the week-old pact, with U.S. President Donald Trump threatening to reignite the war if Iran impeded shipping through the Strait of Hormuz after Tehran declared the crucial waterway blocked. Traffic in the strait picked up Monday and oil prices began their drop.

U.S. Vice President JD Vance said meetings with Iranian officials in Switzerland had built a good basis for a final peace agreement, however Iran denied it had begun talks over its nuclear program.

U.S.-Israeli strikes on Iran and Israeli attacks in Lebanon have killed thousands and uprooted millions. The conflict with Iran has also roiled markets throughout the world and driven up global oil prices, which closed down 3 percent Monday after Vance said some progress had been made.

The two sides negotiated a plan for a permanent agreement within 60 days at discussions in the Qatari-owned Swiss alpine resort of Buergenstock, where they tried to expand on the temporary arrangement they reached last week, mediators Pakistan and Qatar said.

They also agreed on a mechanism to cease hostilities in Lebanon between US ally Israel and Iran-aligned Hezbollah and created a communications channel to help assure safe passage for commercial ships through the Strait of Hormuz to avert war in the crucial waterway.

In one of the first of numerous steps under the agreement, the U.S. Treasury announced a waiver until Aug. 21 on sanctions that allow Tehran to sell oil and related products and get paid for them, providing economic relief to Iran.

Vance upbeat on assessment

Vance, positive since the memorandum of understanding was signed, said Tehran has agreed to let in nuclear inspectors and to create systems for dealing with its frozen assets overseas and for managing cease-fires.We built a very excellent basis for a successful final deal,” he told reporters after participating in the talks.

But Iran’s Foreign Ministry spokesman Esmaeil Baghaei told the official IRNA news agency Iran had not yet discussed nuclear problems and made new pledges.

“Iran will agree to weapons inspections to ensure ‘nuclear honesty,’ ” Trump stated Monday on Truth Social.Later Trump told reporters, “If Iran doesn’t live up to their agreement, or if they’re not behaving, I will do what I have to do.

Iran has cut back on inspections by the International Atomic Energy Agency since the U.S. and Israel conducted an initial round of air strikes last year, then stopped them altogether when war broke out in February. It insists its nuclear program is for peaceful purposes.

Foreign Minister Abbas Araqchi stated on social media that Tehran had received waivers for oil and petrochemical exports, release of some of its blocked assets abroad and launching of a rehabilitation and development plan for Iran.

White House envoy Jared Kushner, Trump’s son-in-law, had worked out a procedure under which the U.S. and Qatar would oversee Iranian finances when they were unfrozen and the money could be used to buy U.S. corn, soy and wheat, Vance said.“So the money that we lift is going to go to our farmers,” Trump told reporters.

Iran’s Central Bank Governor Abdolnaser Hemmati claimed there was no such duty and stated at least some of the remaining frozen funds might be used to buy other non-sanctioned items, Iran’s Tasnim news agency reported.

Cease-fire

Technical conversations are scheduled to continue through the end of the week.

The interim peace accord calls for a halt to all hostilities, including Lebanon, which Israel invaded in March after Hezbollah fired across the border.

Israel has not signed the peace accord and has said it will not withdraw its troops from Lebanon but approved a new truce on Friday. Lebanese officials said the fighting had subsided since Saturday night but continued fiercely for another day.

Israel and Lebanon are scheduled to begin a fresh round of discussions in Washington on Tuesday, with Beirut eager to move forward with direct negotiations, even as they seem to be overshadowed by Iran’s intention to include Lebanon in its negotiations with the United States.

“The first two full days of quiet since the war started,” said Hassan Wazni, director of a hospital in the brutally battered city of Nabatieh.I’m taking it day by day and most of the time I’m sleeping at the hospital. “This is the longest ceasefire to hold,” he told Reuters over the phone.

More than a million Lebanese have been displaced by the war, some have begun to return home, but many are still afraid.

In the southern village of Qennarit, mourners carried the bodies of four women killed in the latest round of Israeli attacks on Saturday. The coffins were covered with yellow Hezbollah banners and the group’s green insignia of an arm holding an assault rifle.

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As oil rises due to concerns about the Strait of Hormuz closing, gold falls more than 1%.

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– Gold prices slid ‌more than 1% on Monday as fears of a closure of the Strait of Hormuz drove oil prices sharply higher, reviving expectations of elevated interest rates to combat inflationary pressures from escalating hostilities in the Middle ​East.

Spot gold dropped 1.5% to $4,060.36 per ounce by 0541 GMT. U.S. gold futures for August ​delivery were down 1.1% at $4,068.30.

U.S. and Iranian forces have exchanged heavy missile ⁠and drone assaults, with Tehran targeting U.S. facilities in states across the Gulf on Sunday and saying ​it had again closed the vital Strait of Hormuz.

Oil prices jumped about 4%, the dollar and ​U.S. Treasury yields climbed, and share markets slipped in Asia.

“Any breakout of violence in the Gulf is accompanied by pressure on gold,” said Nicholas Frappell, global head of institutional markets at ABC Refinery.

“The question is, if the ​Strait of Hormuz remains effectively or partially closed, does that lead to a deflationary effect, ​further down the road, that might actually be supportive for gold if you have demand destruction leading to lower ‌economic ⁠activity,” Frappell added.

Kevin Warsh’s first semiannual testimony before Congress as Federal Reserve chair, along with a slate of key U.S. economic data, including June CPI, PPI and retail sales, will be closely watched this week for fresh clues on the economy, inflation and the monetary policy outlook.

Remarks from Fed ​policymakers, including Vice Chair ​Michelle Bowman and Governor ⁠Christopher Waller, later in the day are also in focus as they could provide insights on how inflationary pressures are affecting the central bank’s ​stance on interest rate hikes.

Traders are currently pricing in a 72% chance ​of a ⁠U.S. Fed interest rate hike in September, up from about 63% last week, according to the CME FedWatch Tool. FEDWATCH/ COMEX gold speculators trimmed their net long positions by 1,964 contracts to 114,854 in the ⁠week to ​July 7, data released on Friday showed, following three ​consecutive weeks of increases.

Elsewhere, spot silver declined 2.6% to $58.29 per ounce, platinum shed 1.6% to $1,601.92, and palladium fell 2% to $1,251.42

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Oil prices climb as US, Iran fight for control of Hormuz

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muz, one of the most important trade routes for global energy supplies.

US crude oil futures were up 4.1% at $74:33 per barrel as of 9:15 p.m. ET. Brent futures, the international benchmark, traded 3.88% higher at $78.96.

The US military launched another wave of strikes Sunday against Iran after hitting 140 targets on Saturday, according to U.S. Central Command. The strikes are in response to an attack by the Islamic Revolutionary Guard Corps on a container ship transiting Hormuz.

Iran responded Sunday with strikes on U.S. military facilities in Jordan, Kuwait, Bahrain and Oman, according to the state news agency Tasnim.

Iranian state media said the Revolutionary Guard had closed the Hormuz until further notice, but the U.S. military disputed that claim. Centcom said the strait was open to “all vessels seeking to lawfully transit.”

“U.S. forces are positioned and prepared to ensure that freedom of navigation remains available despite unwarranted Iranian aggression, harassment, threats, and arbitrary declarations,” Centcom said in a social media post Sunday. “Iran does not control the strait. Traffic is flowing.”

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PSX has a steep sell-off this week.

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— The Pakistan Stock Exchange (PSX) launched the first trading session of the week with a dramatic sell-off, as intense selling pressure pulled the benchmark KSE-100 Index down by more than 2,100 points in early trade.

At the opening of the session, the benchmark index plummeted to the psychological barrier of about 180,100 points after losing more than 2,100 points.

The fall came after a positive conclusion in the previous trading session, when the KSE-100 Index gained 982 points to conclude at 182,241 points at the end of the day.

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