Iran said there had been “major progress” in all-night discussions with the US, as the warring sides try to reach a peace deal within two months.

The countries began technical talks in the Swiss resort of Bürgenstock over the weekend, following their interim agreement last week that led to a ceasefire extension and Iran reopening the Strait of Hormuz.

Plenty of obstacles remain, however, including Israel’s war in Lebanon against Hezbollah, an Iran-backed militant group. At one stage on Sunday, Iran said it would suspend talks — but never actually did — after US President Donald Trump threatened military action against the Islamic Republic over its funding of proxy groups in the Middle East.

On Monday morning, Iranian Foreign Minister Abbas Araghchi said the mediators, Qatar and Pakistan, had managed to ease some of the tensions over Lebanon. He added Iran was beginning to see financial benefits from last week’s memorandum of understanding, including waivers of US sanctions on its oil exports and assets in countries such as Qatar being unfrozen.