Iran-Israel tensions: Switzerland’s role as an intermediary is shrinking 

KEYSTONE

Despite its protecting power mandate for the United States in Iran, Switzerland lacks influence to de-escalate tensions in the region. 

Iran’s unprecedented drone and missile attack on Israel on Saturday in retaliation for a suspected Israeli strike on the Iranian embassy compound in Syria has raised tensions another notch in the Middle East.  

Iran claims it gave neighbouring countries Turkey, Jordan and Iraq, as well as the United States, 72 hours’ notice before launching the strikes. However, Washington claims it was only informed through Switzerland (which represents US diplomatic interests in Iran) when the strikes were already ongoing.  

When contacted, the foreign ministry refused to comment on the communications passed on by the Swiss.  

“The Federal Department of Foreign Affairs does not comment on activities related to its protecting power mandates,” spokesperson Pierre-Alain Eltschinger responded by email.  

“Switzerland strongly condemns the coordinated attacks from Iran against Israel,” the Swiss foreign ministry tweeted on Sunday morning. “The attack significantly increases the risks for the region.” 

Protecting power mandate 

Switzerland has represented American interests in Iran since the hostage crisis at the US embassy in Tehran in 1980. As a protecting power, it enables the two countries to maintain a minimum of diplomatic and consular relations. The Foreign Interests Section of the Swiss Embassy in Tehran handles all US consular affairs in Iran, including passport applications, changes of civil status and consular protection for US nationals. In return for these services, Bern sends Washington a bill of about CHF2 million ($2.2 million) a year, according to a 2012 report by the Centre for Security Studies at the Swiss federal technology institute ETH Zurich.  

In keeping with its tradition of good offices, Switzerland also plays a mediating role. For example, it has assisted in prisoner exchanges between Iran and the United States. Iran’s interests in the United States are represented by Pakistan. 

Switzerland also represents Iranian interests in Egypt and Canada. It also represented Iran’s interests in Saudi Arabia and Saudi Arabia’s interests in Iran from 2018. However, since last year Switzerland has increasingly been sidelined in the region as feuding rivals decide to resume relations.  

Swiss protecting power mandates

Switzerland first acted as a protecting power in the 19th century when it looked after the interests of the Kingdom of Bavaria and the Grand Duchy of Baden in France during the Franco-Prussian War in 1870-71. It also carried out protecting power mandates during the First World War.  

During the Second World War Switzerland became a protecting power par excellence on account of its neutrality, representing the interests of 35 states – including the major warring powers – with over 200 individual mandates. The Cold War was also a busy period with as many as 24 mandates in 1973.  

Switzerland holds only six today:  United States in Iran (since 1980), Iran in Egypt (since 1979), Saudi Arabia in Iran (since 2018), Iran in Canada (since 2019), Russia in Georgia (since 2008) and Georgia in Russia (since 2009).  

Source: Foreign Interests Service 

On March 10, 2023, Iran and Saudi Arabia announced that they wished to re-establish diplomatic relations after Chinese mediation. Tehran then terminated Switzerland’s mandate to represent its interests in Saudi Arabia, effective August 2023. However, Riyadh has not yet formally terminated its mandate. 

Minor player

Despite its decades-long relations with Iran as intermediary, Switzerland is now no longer a key partner. 

“While Switzerland does play a role as an official intermediary, the current situation is so tense and the stakes are so high that a lot of the important contacts are done directly and bilaterally,” Cyrus Schayegh, a professor of international history and politics at the Graduate Institute of Geneva, told SWI swissinfo.ch. 

For example, The Financial Times first reportedExternal link that US diplomats had held secret talks with Iranian counterparts in Oman in January over a potential Gaza ceasefire and the safe passage of maritime traffic in the Red Sea. Despite not sitting at the same table, it was the first in-person negotiations in eight months with the Omanis passing on messages between the two sides.  

Which brings into focus another factor limiting Switzerland’s influence on Iran: the willingness of regional players such as Oman, Qatar and Turkey to intervene when necessary to keep the peace. Switzerland is no longer the only one playing an intermediary role. 

“There are all sorts of actors in the Gulf for whom it is vital that US-Iran relations are not going off the rails as they would be caught in the crossfire. They also have contacts in Iran that the Swiss may not have,” says Schayegh. 

According to the professor, the Iranians will keep the Swiss communication channel open as the Americans trust the Swiss. But the limited nature of what Swiss diplomats can and want to do reflects the wider challenge of being an “outstanding third-party intermediary”.  

“Even during a crisis, low-level and everyday issues do not disappear. I assume Switzerland will continue to serve its role in this capacity but not a crucial role,” says Schayegh. 

Switzerland has attempted to gain more influence with Iran through trade-related support. The Switzerland-Iran RoadmapExternal link guarantees Swiss support for Iran’s accession to the World Trade Organization (WTO). The Alpine nation also signed the Swiss Humanitarian Trade Arrangement (SHTA) with Iran in 2020, which allowed Swiss companies to send medicines and other vital goods to Iran despite US sanctions. However, Switzerland has not succeeded in selling itself as a bridge to Western markets and investment.  

“It is not a big enough economic player in the areas that interest Iran. For example, oil companies in Italy and France want to do business in Iran,” says Schayegh. “Another reason is that Iran has made a strategic decision to reduce economic ties with Europe and is looking to do more business with Asia.” 

Edited by Virginie Mangin