Hezbollah launched rocket and drone attacks on Israel, citing Israeli violations of the Lebanon ceasefire. Israel responded by intensifying strikes across southern Lebanon, continuing its military response. Direct talks between the Lebanese government and Israel are being pursued under US auspices, though disagreements remain over the scope of the US-Iran truce.
President Trump asked Israeli PM Netanyahu to scale back Lebanon strikes, but Israel launched large-scale attacks despite the ceasefire agreement. Iran condemned this as a violation and threatened strong responses, insisting Lebanon be included in regional peace. Tensions are rising, with shipping in the Strait of Hormuz slowing due to ceasefire uncertainty.
Gold prices rose following a temporary ceasefire announcement between the US and Iran, but lost momentum due to uncertainty over the ceasefire's sustainability. The US pressured Iran to open the Strait of Hormuz, while Iran warned of severe retaliation. Concerns over ceasefire violations, such as Israel's actions in Lebanon, are leading to market caution.
Despite upcoming talks in Pakistan, the Strait of Hormuz remains largely shut as both Iran and the US accuse each other of violating the ceasefire. Iran demands control over the strait and sanctions relief, while the US insists on dismantling Iran's nuclear and missile programs. Israeli strikes in Lebanon have heightened tensions, fueling ceasefire violation disputes.
Before JD Vance's trip to Pakistan for peace talks with Iran, Iran cast doubt on the negotiations, citing violations of the ceasefire agreement. Iran demanded fulfillment of prerequisites, including a ceasefire in Lebanon and the release of blocked assets. President Donald Trump also accused Iran of failing to allow oil passage through the Strait of Hormuz.