Iran Halts Strikes on Israel but Warns Lebanon Operations Could Restart Fighting
Iran’s military has ceased its strikes against Israel, CNBC reported Monday, but Tehran issued a sharp warning that continued Israeli operations in Lebanon could force a resumption of hostilities.
First Direct Clash Since April Truce
Sunday night marked the first exchange of fire between Iran and Israel since Washington brokered a ceasefire between the two adversaries in April. Tehran launched missiles toward northern Israel, accusing Jerusalem of repeatedly violating the truce by striking Lebanese territory. An Israeli attack on Beirut’s southern suburbs earlier Sunday was cited as the immediate trigger. Israel described its subsequent response as a large-scale strike against what it called strategic defense infrastructure.
The flare-up sent oil prices sharply higher before they pared gains. Crude briefly surged more than 5% as traders priced in the risk of a wider regional conflict before retreating from session highs as Iran announced the halt.
Trump Pushes Both Sides Toward Deal
President Donald Trump responded to the overnight exchange by pressing both governments to stand down. He posted to Truth Social that Israel and Iran were both seeking an immediate ceasefire, and that final peace negotiations were proceeding. Trump said the U.S. blockade would remain fully in force until a definitive agreement is signed. He added that things “should move quickly.”
In a separate conversation with the Financial Times on Sunday, Trump was blunt about Israeli Prime Minister Benjamin Netanyahu’s options. He said Netanyahu “won’t have any choice” but to accept whatever deal Washington negotiates with Tehran, asserting that the U.S. president “calls the shots.”
Fragile Talks, Fractured Trust
The April ceasefire was already showing serious strain before Sunday’s exchange. An Iranian official connected to the Washington-Tehran channel told a media outlet that a deal with Trump is “no longer feasible at this stage,” placing blame squarely on the U.S. side for the situation in Lebanon and the broader escalation. That statement signals a meaningful deterioration in diplomatic momentum and raises the possibility that any new truce could prove equally short-lived.
What Comes Next
The ceasefire’s immediate survival hinges on Israeli military conduct in Lebanon. Tehran has drawn a clear red line, and another IDF strike on Lebanese territory could restart the exchange. Equity and commodity markets will be watching each development closely. Any renewed escalation would pressure energy prices upward and add fresh uncertainty to an already unsettled global macro backdrop.
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