Planned US-Iran peace talks in Switzerland were abruptly called off on Friday, dealing an early setback to efforts to implement the fragile memorandum of understanding signed earlier this week to end the recent conflict.

Switzerland’s Foreign Ministry confirmed that the discussions scheduled at the Burgenstock mountain resort will no longer take place. The development came after the White House said US Vice President JD Vance had withdrawn from his planned trip to meet Iranian negotiators.

The cancellation adds to the uncertainty surrounding the limited agreement that ended the short but intense US-Iran confrontation. President Donald Trump had entered the conflict with strong demands for Iran’s “unconditional surrender,” but ultimately settled for a more modest memorandum of understanding, according to reports.

Trump, however, pushed back against any suggestion that the outcome showed limits to his leverage. In an interview with Axios, he insisted there were still “no limits” to his ability to exert power on the global stage.

Iranian Parliament Speaker Mohammad Bagher Ghalibaf, who served as chief negotiator, issued a sharp warning from Tehran. He made it clear that Iran would not tolerate any violations of the MoU and would respond forcefully if Washington failed to honour its commitments. In a post on X, Ghalibaf said Tehran had demonstrated its strength during the conflict and would not hesitate to act decisively against any perceived bad faith.

The talks in Switzerland were expected to be the first formal discussions between the two sides after the ceasefire. Their abrupt cancellation has raised fresh concerns about the durability of the agreement.

Meanwhile, tensions continue in the wider region. Israeli strikes in southern Lebanon killed several people even after the US-Iran deal took effect. Reports from Lebanon’s National News Agency said three people died in an air raid near Baalbek in the Bekaa Valley. Hezbollah also carried out attacks on Israeli positions, with the IDF reporting casualties including four soldiers killed in one incident.

These developments come despite signs of tentative normalisation at sea. Ship movements through the Strait of Hormuz have picked up since the blockade was lifted. India’s LNG tanker ‘Disha’ safely reached Gujarat’s Dahej port, marking a positive signal for energy security. Oil prices have eased on expectations of improved supply flows.

The limited nature of the US-Iran MoU has drawn mixed reactions. While it has eased immediate fears of wider escalation and allowed some maritime traffic to resume, critics point out that core issues remain unresolved. Israel has shown no signs of withdrawing forces from southern Lebanon, and hardline voices within Israel continue to call for stronger action.

Back in Washington, the Trump administration finds itself defending the deal amid criticism from parts of the Republican base and strong pushback from Israel. JD Vance has emerged as one of the public faces defending the agreement.

For India, the developments carry direct implications. Lower oil prices and smoother passage through the Strait of Hormuz offer relief on the energy import bill. However, prolonged uncertainty in West Asia could still affect broader economic stability and the safety of Indian nationals and assets in the region.

Further details on why the Switzerland talks were scrapped and what the next steps will be are still awaited. Both sides appear to be buying time even as fragile ceasefires are tested on multiple fronts.

The coming days will be critical in determining whether the limited MoU can hold or if fresh diplomatic efforts will be needed to prevent another round of escalation.

The Indian equity benchmarks opened on a weak note and extended losses through the session on Friday, with heavy selling in IT stocks pulling the markets sharply lower.

The BSE Sensex tumbled nearly 800 points to trade around 76,600 levels. The NSE Nifty slipped below the key 24,000 psychological mark and was seen hovering near 23,950. 

IT shares bore the maximum brunt. Infosys crashed up to 8 per cent, while TCS, Tech Mahindra, and HCL Technologies fell between 5-6 per cent. The Nifty IT index plunged over 5 per cent, becoming the worst performing sectoral index of the day.

According to preliminary information, the sell-off in domestic IT counters followed weak global cues after Accenture’s disappointing outlook weighed on investor sentiment towards the sector. 

Sectoral performance remained mixed. While Nifty Chemicals, Healthcare, Pharma, and Media managed to stay in positive territory or limit losses, most other indices traded in the red.

Oil prices traded flat on Friday with Brent crude continuing to hover below the $80 per barrel mark. The global benchmark has fallen nearly 38 per cent from its Iran war highs of $126 per barrel, offering some comfort on the inflation front for India.

Asian markets showed a mixed trend in early trade. The KOSPI and Nikkei closed in the green, while the Hang Seng slipped into negative territory.

Wall Street, meanwhile, ended on a firm note on Thursday. The Dow Jones, Nasdaq, and S&P 500 all posted gains, with the tech-heavy Nasdaq rising nearly 2 per cent.

Back home, the rupee showed resilience. The local currency rose 20 paise to 94.20 against the US dollar on Friday. Currency traders noted that the rupee has gained nearly 3 per cent in the last one month, supported by easing oil prices and steady foreign inflows in recent weeks.

The sharp reversal on Friday comes after a decent session on Thursday. On June 18, the Sensex closed at 77,410, up 254 points, while the Nifty settled at 24,168, gaining 82 points.

Market participants are closely watching global cues and upcoming corporate earnings. Further details on the extent of the sell-off and any institutional flows are awaited. The investigation into broader market volatility, if any, remains ongoing as traders assess the sustainability of the recent rally.

The correction in IT majors highlights the sector’s sensitivity to global tech spending trends. With several Indian IT firms heavily dependent on US and European clients, any slowdown in discretionary spending or guidance cuts abroad tends to reflect quickly on Dalal Street. 

At the same time, lower crude prices could support other segments like auto, consumer goods, and banks by keeping input costs in check. Whether this provides enough counterweight to the IT drag will decide the market’s near-term direction.

As of now, sentiment remains cautious with traders preferring to stay light ahead of the weekend.