The Middle East is entering a new phase of tension following the latest developments in contacts between the US and Iran over a potential agreement to end hostilities.
The flare-up follows Israeli attacks in southern Lebanon, where the Israel Defence Forces (IDF) captured the medieval Beaufort Castle. Israeli Prime Minister Benjamin Netanyahu announced that the military advance will continue and ordered bombings in areas of Beirut.
In response, Tehran announced earlier that it is halting the exchange of messages with the US within the framework of talks for an agreement. Shortly afterwards, Iranian television broadcast that the probability of the ceasefire between Iran and the US ending is high, unless Israel stops its attacks in Lebanon.
Furthermore, Iran is threatening a full blockade of the Strait of Hormuz and the activation of other fronts, including the Bab el-Mandeb Strait, aiming to punish Israel and its supporters.
These developments triggered a spike in oil prices and a downward turn across European stock markets. The Euro Stoxx 50 index fell by 0.64%, reflecting drops in main European indices: Paris fell 0.79%, Frankfurt dropped 0.80%, and Milan went down 0.81%. London failed to benefit from rising oil prices and fell by 0.87%.
News of Iran’s decision to suspend negotiations with the US drove oil prices higher, adding to gains from weekend tensions between Tehran and Washington. Brent crude for August delivery rose 6.60% to 97.13 dollars a barrel, while US West Texas Intermediate for July delivery increased by 7.62% to 94.02 dollars.
Trump claims no notification from Iran over talks
US President Donald Trump told an NBC News reporter today that Iran has not informed him about suspending talks with Washington. However, he noted that he believes there have been too many discussions and that some quiet would be beneficial. He told NBC News that to tell the truth, he believes they are talking too much and that shutting up would be very good, adding that this could last for a long period of time.
Netanyahu orders strikes on southern Beirut
Meanwhile, Benjamin Netanyahu said today he has ordered the military to attack targets in the southern suburbs of Beirut, a Hezbollah stronghold, as Israel expands its military operations in southern Lebanon.
An official statement emphasised that due to repeated ceasefire violations in Lebanon by the Hezbollah terrorist organisation and attacks against Israeli towns and citizens, Prime Minister Benjamin Netanyahu and Defence Minister Israel Katz ordered the Israeli army to strike terrorist targets in Beirut’s southern suburbs.
European Commission calls for de-escalation
The European Commission’s spokesperson for the Middle East, Anouar Anouni, called on Israel to stop its military escalation in Lebanon and to respect the country’s sovereignty and territorial integrity. He stressed that ongoing diplomatic efforts must continue to secure a negotiated solution that ensures long-term stability and security for both Lebanon and Israel. He pointed out that the Lebanese people have already endured immense hardships, did not choose this war, and that this war is not theirs.
US forces intercept Iranian missiles in Kuwait
Additionally, the United States Central Command (CENTCOM) announced that the US military intercepted two Iranian ballistic missiles late on Sunday night. The missiles targeted US forces stationed in Kuwait.
CENTCOM noted in its statement that no US military personnel were injured. The statement concluded by saying that US Central Command remains alert and will continue to protect its forces from Iranian aggression while supporting the current ceasefire.