Morning update

The United States and Iran took another step toward implementing their memorandum of understanding after negotiations in Switzerland produced agreements on sanctions relief, nuclear inspections and the release of frozen Iranian assets.

While both sides highlighted progress, disagreements remain over how released funds can be used and over ongoing tensions in Lebanon.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf said an agreement had been reached to release $12bn in frozen Iranian assets.

The US Treasury Department announced temporary sanctions relief allowing Iranian oil and petrochemical sales until 1 August.

Washington said the measures follow Iran’s commitment to permit international nuclear inspections after intensive talks in Switzerland.

President Donald Trump said released Iranian funds would be used to purchase food and agricultural products from US farmers.

Iran’s Central Bank rejected Trump’s comments, saying Tehran is under no obligation to spend released funds on American goods.

Iranian officials said technical negotiations with the United States have concluded and the process is entering a new phase.

President Masoud Pezeshkian said the effectiveness of future talks depends on all sides fully implementing their commitments.

A US official said Centcom has launched a monitoring mechanism in Lebanon to provide American officials with assessments of fighting on the ground.

Israeli officials reiterated that military operations in Lebanon would continue despite ongoing diplomatic progress between Washington and Tehran.

Markets and regional observers continued to focus on sanctions implementation, Hormuz shipping activity and the durability of the broader agreement.