Israel lifted all restrictions in its northern border region on Monday as diplomatic efforts advanced toward a partial Israeli withdrawal from southern Lebanon and U.S.-Iran negotiations in Switzerland showed what Vice President JD Vance called a "good foundation for a successful final deal." The moves came as no attacks were recorded on Sunday between Israel and Hezbollah, the first such day since March 2 when the latest conflict began less than four months ago.
Israel and Lebanon were expected to negotiate this week over "pilot zones" for exclusive Lebanese control, with an Israeli source telling Haaretz that the IDF would withdraw from some of these areas. Under the reported plan, Lebanese forces would assume responsibility for those areas under close American supervision and would also take control of additional locations not currently held by Israeli troops. The Israeli military could be required to partially withdraw from the so-called yellow line in southern Lebanon as part of ongoing diplomatic efforts, according to a report by Haaretz citing an Israeli source.
US-Iran Negotiations Advance Despite Tensions
In Switzerland, Vice President JD Vance said his lengthy talks with senior Iranian officials created a "good foundation for a successful final deal" as the United States and Iran sought a permanent end to the war that the U.S. and Israel began in late February. "The final deal is the house. We set the foundation. We haven't built the house, but we've laid a successful foundation to get to a good place for the American people," Vance said. He said progress had been made on multiple fronts, including the establishment of "mechanisms" to ensure the Strait of Hormuz stayed open and that a ceasefire held in the fighting between Israel and Iran-backed Hezbollah militants in southern Lebanon.
The mediation effort in Switzerland started Sunday and stretched into early Monday, and technical talks would continue this week, Vance said. U.S. envoys Jared Kushner, Trump's son-in-law and one of the lead U.S. negotiators, and Steve Witkoff were handling many of the technical details. In a joint statement, mediators Pakistan and Qatar hailed what they called "encouraging progress." The interim deal to end the fighting in Iran, signed last week by the leaders of the U.S. and Iran, set a 60-day period for negotiators on issues including the future of Tehran's nuclear program.
Economic Measures and Sanctions Relief
Vance said the U.S. Treasury issued a 60-day license waiving sanctions on Iranian oil as part of the interim agreement to end the war, and that the license would last through Aug. 21. He said the U.S. could agree to unfreeze Iranian assets for purchases of U.S. soy, corn and wheat, and said Kushner came up with the idea with officials from Qatar. Vance said Qatar would have approval over the process and that Iranian money accessible as sanctions were lifted would buy American products "for the benefit of the Iranian people."
The talks were jolted by statements from Trump, who fired off comments that offended the Iranians. Iranian state media said talks had paused after the "publication of an insulting message by the U.S. President," but the negotiations later continued. Vance said, "No, they didn't throw a wrench in the system," and added, "Yes, they did threaten to walk out, or at least there were social media threats that they would walk out. But we were negotiating well past one in the morning yesterday, so they didn't walk out." Vance also said, "What we told the Iranians yesterday is when you guys engage in what us millennials might call trash talk, you can't expect the President of the United States not to respond and not to correct the record."
Lebanon Ceasefire Holds
Iranian Foreign Minister Abbas Araghchi wrote on X that mediators delivered "major progress to end the Lebanon War" and said the first "real test" of negotiations would be whether the mechanism succeeded in halting the fighting between Israel and Hezbollah. He said neither Israel nor Hezbollah was a signatory to the U.S.-Iran deal. A renewed ceasefire in Lebanon appeared to be holding, and Israel's military said it would lift movement restrictions for residents near the Israel-Lebanon border on Monday. Cautious calm continued Monday in Lebanon, with no Israeli strikes reported overnight, and Hezbollah had not announced any attacks on Israeli forces since Saturday. The lull in fighting in Lebanon was the longest since the latest Israel-Hezbollah war began on March 2. A UNIFIL source said no attacks were recorded on Sunday between Israel and Hezbollah. Vance said, "This region has been a basket case for a very long time."
Why This Matters:
The diplomatic progress in Switzerland and the sustained ceasefire in Lebanon represent a critical test of whether security arrangements backed by American oversight can succeed where previous agreements have failed. The establishment of mechanisms to ensure the Strait of Hormuz stays open addresses a strategic chokepoint through which roughly one-fifth of global oil passes, while the ceasefire monitoring system will determine whether Lebanese forces can prevent Hezbollah from reestablishing military positions near Israel's border. The 60-day negotiating period on Iran's nuclear program creates a narrow window for addressing the threat of an Iranian nuclear weapon, which Israeli and American security officials have identified as an existential concern. The partial Israeli withdrawal from southern Lebanon hinges on whether Lebanese forces under American supervision can maintain control and prevent the Iran-backed militant group from rebuilding the infrastructure that enabled attacks on Israeli civilians. The economic measures linking sanctions relief to purchases of American agricultural products offer a mechanism for calibrating pressure while avoiding the humanitarian consequences of total isolation, though the success of this approach depends on whether Iran uses the breathing room to pursue diplomacy or to continue funding proxy forces across the region.