TRUCE IN LEBANON?
One of the biggest questions still hanging over the truce is the fate of Lebanon, which Israel invaded in March to root out Hezbollah after the militant group fired across the border in solidarity with Tehran following US-Israeli strikes on Iran.
Israeli forces still occupy a swathe of southern Lebanon, where more than a million people have been driven from their homes, while Hezbollah remains undefeated.
Iran says the ceasefire must also end hostilities in Lebanon, and that a permanent deal must lead to an Israeli withdrawal. Israel, which was excluded from the US-Iran peace negotiations, says it will not withdraw and reserves the right to use military force.
That has opened up a rift between Israel and the United States, with Trump publicly berating his wartime ally Israeli Prime Minister Benjamin Netanyahu. On Tuesday, Trump said at the summit that he was “not happy” with the way Israel had handled itself.
“Without us, without the United States, there would be no Israel. Without me, there would be no Israel, because no other president was willing to do what I did,” Trump said.
In their statement, the G7 leaders called for an “immediate robust ceasefire” in Lebanon and the disarmament of Hezbollah.
A Hezbollah spokesperson told Reuters the group believed Iran would not agree to a permanent truce if the Israeli occupation did not end.
After decades of US and international financial sanctions that pushed Iran’s economy to the brink, a peace deal could deliver economic benefits. The memorandum includes a US$300 billion reconstruction fund, paid for by neighbouring Gulf states, if Iran complies with other terms.
In the coming 60 days, negotiators will return to difficult issues such as the future of Iran’s nuclear programme. But Iran’s support for regional militia groups and its missile arsenal do not appear to be on the agenda, in what would amount to major US concessions.
Oil prices fell again on Wednesday on prospects for the reopening of the Strait of Hormuz, with Brent crude futures below US$80, at their lowest level since the opening salvos of the U.S.-Iran conflict.
A senior US official said the US will waive sanctions on Iranian oil under the deal to end the war, raising the prospect of millions of additional barrels of supply, though industry officials say Middle East oil and gas output will take months to fully recover.
The G7 leaders said they had committed to “accelerate the diversification of energy supply routes in order to reduce global vulnerability to the Strait of Hormuz and to increase our energy stocks”.