Delegations from the United States, Iran, and regional mediators convened in Burgenstock, Switzerland, this week to advance discussions following a Memorandum of Understanding signed between Washington and Tehran last week. Observers have identified Lebanon as a significant challenge facing the negotiations, with tensions continuing to simmer despite efforts to uphold a recent truce between Israel and Hezbollah.

The talks come amid renewed friction surrounding the Strait of Hormuz, where Iran has accused the United States and Israel of violating a ceasefire, a charge denied by Washington. Israel and Hezbollah agreed to renew their truce on Friday, but sporadic violence persists in southern Lebanon.

In a statement Sunday, Qatari Foreign Ministry spokesman Majed Al-Ansari said the parties had established specialized technical working groups tasked with negotiating a comprehensive final agreement covering all aspects of the memorandum. He indicated that the goal was to reach a conclusive deal within 60 days of ongoing discussions.

Iran’s semi-official Tasnim news agency reported that Iran would not consider reopening the Strait of Hormuz unless the conflict in Lebanon is resolved. A source close to the Iranian team warned that continued Israeli military actions and threats to Lebanon’s territorial integrity would preclude Iran from negotiating on other issues. The Iranian delegation, led by Parliament Speaker Mohammad Bagher Ghalibaf and Foreign Minister Abbas Araghchi, arrived in Switzerland on Saturday.

Iranian Foreign Ministry spokesman Esmaeil Baghaei told domestic media that the Lebanese conflict, frozen Iranian assets, and oil export sanctions would dominate the agenda. Analysts such as Trita Parsi, executive vice president of the Quincy Institute for Responsible Statecraft, and Ryan Costello, policy director at the National Iranian American Council, have emphasized Lebanon as the “greatest test” for the deal’s success, noting risk of breakdown in wider negotiations should the Lebanese situation deteriorate.

U.S. Vice President JD Vance stressed that the success of the talks would depend initially on establishing a clear framework for negotiations. He identified Iran’s nuclear program and the Lebanon ceasefire as key priorities. Technical teams are continuing to work on detailed components of the agreement.

Pakistani Prime Minister Shehbaz Sharif, present in Switzerland for the meeting alongside Chief of Army Staff Field Marshal Syed Asim Munir, said in a social media post that dialogue and diplomacy must remain the foundation of the process. He also emphasized the need for vigilance against factors that could jeopardize the peace efforts, referencing a recent conversation with Saudi Crown Prince Mohammed bin Salman.

Meanwhile, hostilities have continued on the ground. Lebanese authorities reported that Israeli airstrikes killed at least seven people and injured one on Sunday in eastern and southern regions. The previous day, attacks in the Nabatieh district resulted in 16 deaths and 12 injuries. The Israel Defense Forces confirmed that a soldier was killed Saturday morning during what they described as an attack by Hezbollah.

As diplomatic efforts proceed, the volatile situation in Lebanon remains a focal point and potential stumbling block for the broader U.S.-Iran negotiations in Switzerland.