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Israel and Lebanon agree to implement ceasefire, giving new hope to possibility of Iran deal

The two sides had agreed last month to a ceasefire but hostilities had continued

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Israel's Ambassador to the US Yechiel Leiter (L), US Ambassador to Lebanon Michel Issa (2R) and Lebanese Ambassador to the US Nada Hamadeh (R) listen as State Department Chief of Staff Daniel Holler speaks
Israel's Ambassador to the US Yechiel Leiter (L), US Ambassador to Lebanon Michel Issa (2R) and Lebanese Ambassador to the US Nada Hamadeh (R) listen as State Department Chief of Staff Daniel Holler speaks. Picture: Oliver Contreras / AFP via Getty Images

By Rebecca Henrys

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 US-Israeli war on Iran.

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Tehran, which had conditioned any deal with the US in part on an end to fighting between Israel and Lebanon, earlier struck Kuwait, damaging its airport and injuring dozens, while the US 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 US 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 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 US, Israel and Iran, sending oil prices up nearly 2 per cent, as the strait remains largely closed more than three months after the U.S. and Israel launched strikes on Iran.

Read more: Republicans break with Trump to approve measure to prevent him from resuming Iran war without Congress

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A view of damaged vehicles in the area following the Israeli airstrike, violating the ceasefire agreement in Houmine town of Nabatieh, Lebanon on June 3, 2026
A view of damaged vehicles in the area following the Israeli airstrike, violating the ceasefire agreement in Houmine town of Nabatieh, Lebanon on June 3, 2026. Picture: Mohamad Zanaty/Anadolu via Getty Images

Flights at Kuwait International Airport were suspended after an Iranian drone and missile attack damaged airport facilities and diplomatic missions, killing one person and injuring more than 60 others, Kuwaiti authorities and state media said.

Kuwait Airways and Jazeera Airways later resumed flights after taking safety measures, the civil aviation authority said.

Iran's elite Revolutionary Guards said they did not fire at Kuwait's airport and blamed the destruction on US interceptor missiles that failed to hit their targets, according to Iranian state media.

The US military said that was not accurate, and that Iranian drones targeted the airport deliberately.

Earlier, Iranian media reported the Revolutionary Guards had attacked the headquarters of the US Fifth Fleet in Bahrain and a US airbase, as well as a vessel identified as Panaya.

Kuwaiti Prime Minister Sheikh Ahmad al-Abdullah al-Sabah (C) inspecting the damaged airport after an attack, in Farwaniya Governorate, Kuwait, on June 3, 2026
Kuwaiti Prime Minister Sheikh Ahmad al-Abdullah al-Sabah (C) inspecting the damaged airport after an attack, in Farwaniya Governorate, Kuwait, on June 3, 2026. Picture: Office of Prime Minister/Handout via Xinhua

US Central Command (CENTCOM) denied its bases had been hit and said Iranian ballistic missiles failed to strike their targets in the region.

CENTCOM said it had carried out a new round of "defensive strikes" in southern Iran, targeted missile launch sites and Iranian boats seeking to lay mines, and conducted strikes on Qeshm Island near the Strait of Hormuz after attempted Iranian attacks.

Since the US and Israeli strikes on Iran began on February 28, Tehran has repeatedly attacked targets in the Gulf region, home to US military bases.

Hostilities have periodically flared up in recent weeks despite a ceasefire agreed in early April, as the US 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 US signalled 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.

Smoke rising from the site of an Israeli strike that targeted the village of Arnoun on June 3, 2026
Smoke rising from the site of an Israeli strike that targeted the village of Arnoun on June 3, 2026. Picture: AFP via Getty Images

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 US blockade on its ports and continued leverage over the strait.

US 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 to not 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.

“If it happens, it could happen over the weekend,” Trump told reporters in the White House’s Oval Office, without elaborating on what he expected to happen within that timeframe.

Trump said that parties were working to separate the issue of reopening the strait from the conflict in Lebanon.

The war has killed thousands, mainly in Iran and Lebanon, while causing global economic pain ⁠by severely disrupting energy supplies and other shipping.

It also sparked the latest round of conflict between Israel and Hezbollah.

On Wednesday, Israeli drone strikes killed at least six people in southern Lebanon and targeted a car just south of Beirut, Lebanese security sources said, while Israel said it intercepted a hostile aircraft likely fired by Hezbollah.

Araqchi said Iran would respond decisively if Israel attacks Beirut.

In his podcast comments, Trump acknowledged having called Israel's Prime Minister Benjamin Netanyahu "crazy" during a reportedly expletive-filled phone exchange over the fighting in Lebanon as he sought a deal over the wider war.

"At some point I said, Bibi, we got to stop this. We got to stop it," Trump said, referring to Netanyahu by his nickname.

Netanyahu told CNBC in an interview that he and Trump sometimes had "tactical disagreements" but that they agreed on the main issues concerning Iran.