Iran and Israel have both announced a pause in military attacks following an appeal from United States President Donald Trump, although Tehran has warned that hostilities could resume if Israel continues strikes linked to Hezbollah targets in Lebanon.
The latest development marks the most direct confrontation between the two regional rivals since April, raising concerns that the escalation could derail ongoing diplomatic efforts by Washington to secure a broader peace agreement with Tehran.
Global financial markets reacted swiftly to the tensions, with oil prices initially surging by up to 5% amid the exchange of strikes before easing after Iran signalled the end of its first wave of retaliation. The US dollar also slipped from recent highs as traders responded to the shifting situation.
According to reports, both sides carried out limited strikes, with Iran firing missiles towards Israeli territory in response to attacks on Hezbollah positions, while Israel targeted Iranian air defence systems and a petrochemical facility allegedly linked to missile production. No fatalities have been reported on either side.
Former US President Donald Trump claimed both Iran and Israel were open to an immediate ceasefire, stating that “final negotiations on peace” were underway, although he warned that obstacles could still derail progress.
In a separate statement, an Israeli military official said operations could continue “for as long as it takes”, while Iranian officials maintained that they remain prepared for a prolonged conflict if necessary.
The situation has also drawn international concern, with United Nations Secretary-General António Guterres urging all parties to exercise maximum restraint and avoid actions that could further destabilise the region.
Meanwhile, indirect tensions continue to involve other regional actors, including Yemen’s Houthi movement, which has reportedly launched attacks in support of Iran, further widening the scope of the conflict.
Despite the announcement of a temporary halt in strikes, analysts warn that the situation remains fragile, with both sides maintaining firm positions on key issues including Lebanon, sanctions, and nuclear-related negotiations.
