Iran and Israel say they have stopped attacks on each other for now

DUBAI/JERUSALEM — Iran and Israel said on Monday that they had halted attacks on each other following an appeal from U.S. President Donald Trump, although Tehran warned it could resume hostilities if Israel continued strikes on Hezbollah positions in Lebanon.

The announcement marked a rare pause in the most direct confrontation between the two adversaries in recent months and raised hopes of easing a conflict that has repeatedly threatened to destabilize the wider region and disrupt global markets.

Oil prices initially surged by as much as 5% during the escalation before easing after Iran’s military said its first wave of strikes had concluded. The U.S. dollar also retreated from near two-month highs as tensions appeared to cool.

A source briefed on the situation said Israel had also decided to suspend further strikes on Iran.

The latest exchange began after Tehran launched missile attacks toward Israeli territory late Sunday, describing them as retaliation for Israeli strikes against Iranian-backed Hezbollah positions on the outskirts of Beirut. Israel responded by targeting Iran’s air defense systems and a petrochemical facility it said was linked to ballistic missile production. Iran’s Islamic Revolutionary Guard Corps said it carried out a counterstrike against a similar Israeli facility in Haifa.

Authorities on both sides reported no fatalities.

The escalation complicated efforts by President Trump to push forward a broader diplomatic framework aimed at ending a protracted conflict involving the United States and Israel, which intensified earlier this year. A ceasefire announced in April had temporarily halted full-scale warfare, although periodic flare-ups have continued.

Trump said both Israel and Iran were signaling openness to an immediate ceasefire. In remarks posted on social media, he said final negotiations on peace were underway, though he cautioned that obstacles remained.

U.S. and Israeli officials confirmed that Trump spoke with Israeli Prime Minister Benjamin Netanyahu on Monday.

In an interview with Axios, Trump said he warned Netanyahu against further escalation, suggesting Israel could risk acting alone if it resumed war with Iran. Israel’s ambassador to Washington, Yechiel Leiter, rejected claims that Trump had pressured Netanyahu, describing their discussions as cooperative and longstanding, while criticizing media interpretations of the exchange.

Despite diplomatic messaging, both sides maintained firm public positions. An Israeli military official said operations would continue “as long as it takes,” while Iranian officials signaled readiness for a prolonged confrontation and potential strikes against U.S. interests in the region.

The United Nations Secretary-General António Guterres urged all parties to exercise maximum restraint and avoid any actions that could further inflame tensions, according to a U.N. spokesperson.

Iranian Foreign Ministry spokesperson Esmaeil Baghaei said Tehran was maintaining communications with Washington in an atmosphere of “extreme suspicion.”

Regional tensions also extended beyond Israel and Iran. Yemen’s Iran-aligned Houthis said they would target Israeli navigation in the Red Sea and claimed to have launched missiles toward Israel. The Israeli military later reported intercepting a suspicious aerial target launched from Yemen near the southern city of Eilat.

In Tehran, Iranian media reported explosions and said air defenses had shot down a drone over the capital. No immediate casualties or major damage were reported. Flight operations at Tehran’s Imam Khomeini International Airport resumed on Tuesday after a temporary suspension.

Meanwhile, Israel’s campaign in Lebanon continues, with officials insisting it remains separate from any U.S.-Iran ceasefire efforts. Hezbollah has also continued cross-border attacks.

The United States has said Lebanese-Israeli discussions are expected to resume in Washington, as diplomatic efforts attempt to prevent further regional escalation. -Reporting by Reuters bureaus; Writing by Gareth Jones, Andy Sullivan and David Morgan; Editing by Ros Russell and Lincoln Feast/Reuters