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DUBAI, June 3 (Reuters) – Israel and Lebanon agreed to implement a ceasefire to end hostilities, the Trump administration said on Wednesday, in a boost to hopes for a broader deal to end the U.S.-Israeli war on Iran.
Tehran, which had conditioned any deal with the U.S. in part on an end to fighting between Israel and Lebanon, earlier struck Kuwait, damaging its airport and injuring dozens while the U.S. military carried out strikes near the Strait of Hormuz.
The Israel-Lebanon ceasefire is contingent on a complete cessation of fire from the Iran-aligned Hezbollah militia and the evacuation of all its operatives from the South Litani Sector, a joint statement released by the U.S. State Department said following negotiations in Washington.
The two sides had agreed last month to a ceasefire, but hostilities had continued. Israel invaded Lebanon in March in pursuit of the Lebanese militant group Hezbollah, which fired across the border in support of Tehran.
The attacks on Kuwait and in the Strait are the latest to test a shaky ceasefire between the U.S., Israel and Iran, sending oil prices up nearly 2%, as the Strait remains largely closed more than three months after the U.S. and Israel launched strikes on Iran.
Since the U.S. and Israeli strikes on Iran began on February 28, Tehran has repeatedly attacked targets in the Gulf region, home to U.S. military bases.
Hostilities have periodically flared up in recent weeks despite a ceasefire agreed in early April, as the U.S. has pushed to reopen the Strait of Hormuz, which handled roughly a fifth of global oil and liquefied natural gas shipments before the war.
Last week, Iran and the U.S. signaled progress towards a tentative initial agreement to halt the war and reopen the strait, but the two sides have yet to sign off on the deal, which would leave more complex negotiations for later.
Iran’s Foreign Minister Abbas Araqchi told Lebanese broadcaster Al Mayadeen on Wednesday that talks had not been cut off, but no progress had been made.
In addition to Tehran conditioning a deal on an end to fighting in Lebanon, it also wants access to billions of dollars in oil revenue, waivers on sanctions on crude exports, a lifting of a U.S. blockade on its ports, and continued leverage over the strait.
U.S. President Donald Trump, who is under pressure to bring down fuel prices, has said his top priority is to stop Iran from acquiring nuclear weapons. Iran says its atomic program is for peaceful purposes. In a podcast interview released on Wednesday, Trump said Iran had agreed not to have a nuclear weapon and that Khamenei was involved in negotiations.
Later on Wednesday, Trump suggested there could be progress in negotiations with Iran as soon as this weekend.
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