Israel, Hezbollah agree to ceasefire after morning flareup

German Chancellor Friedrich Merz spoke about the tentative ceasefire efforts in the Middle East as the EU leaders' summit wrapped up in Brussels on Friday. 

He did not speak to the reports of the latest deal between Israel and Hezbollah, still developing as he took the podium, but nevertheless laid emphasis on the need for fighting to stop in Lebanon.

He said European heads of state and government were "unanimous in the view that it is now of crucial importance that the ceasefire negotiated between the US and Iran also holds in the south of Lebanon."

"We call on the Israeli government to refrain from a further escalation via continued settlement building in the West Bank," Merz said, adding that he had "made this clear" in recent talks with Israeli Prime Minister Benjamin Netanyahu. 

He also said that European leaders had discussed the possibility of "trade measures" against Israel — seemingly a soft reference to some form of potential sanctions — and concluded "I rejected this proposal on behalf of the [German] federal government." 

There is relief in the Gulf as the conflict between the US and Iran has entered a negotiation phase following nearly four months of fighting.

Up until a ceasefire in April, Iran repeatedly fired on US military installations along with civilian and energy infrastructure in Gulf states.

In the aftermath of the conflict, Gulf states are looking at Iran in a new light, while at the same time, confidence in the US security umbrella in the region is waning.

DW looks at how the Iran war has changed relations between the Gulf neighbors and Tehran.

Diplomats from other countries in the region are also reporting the new ceasefire between Israel and Hezbollah in Lebanon, albeit also on the condition of anonymity. 

Reuters cited a "senior Israeli official" as saying that the two sides were in a state of ceasefire, until and unless Hezbollah fired on Israel. 

"Then we are in war time," the official was quoted as saying. 

The official said Israel would keep its forces in the self-declared "security zone" in southern Lebanon near the de facto border. 

Reuters also cited two unnamed Hezbollah sources as saying: "As soon as we got word of the ceasefire, we applied it from our end."

The Associated Press, meanwhile, cited "two regional officials" as confirming the accord, as well as their US government source. 

And AFP cited a "Gulf diplomat" with similar comments, on condition of anonymity. 

"Hezbollah and Israel have agreed to halt hostilities in a deal mediated by Qatar, the US, and Iran," the diplomat was quoted as saying. 

Based on these unnamed comments, the truce is already in effect, and has been for almost an hour now.

Israel and the Lebanese, Iran-backed Hezbollah militant group have reportedly agreed to a ceasefire starting at 4 p.m. local time (1300 GMT) on Friday, after fighting that has shaken the deal between Iran and the US to end the war.

"Hezbollah and Israel have agreed to ‌a ceasefire," Reuters news agency cited what it called a "senior US official" as saying, without naming them. It reported that US and Qatari negotiations worked out the deal with help from Iran.

"We understand ​that after ‌the exchange of fire ​earlier ⁠today, Israel and Hezbollah are ⁠now ​in a ceasefire," the offical was quoted as saying, with AFP reporting similar off-the-record comments.

Iranian officials have announced that vessels will be granted passage through the Strait of Hormuz if they submit requests in accordance with newly released procedures.

The ships would be required to file transit requests at least 48 hours before entry. They would need to coordinate routes and transit time in advance due to mines and other safety risks.

The government body in charge of the strait said it would waive fees for the next 60 days, the negotiation period following the signing of the Memorandum of Understanding with the US. The fees, according to the agency, would be compensation for security, safety, ​environmental services and ‌related insurance.

With Iranian footballers taking part in the ongoing 2026 World Cup in North America, the Iranian football federation said they will file a complaint with FIFA over strict travel restrictions imposed on their team in the US.

Iran had already switched its base from the US state of Arizona to Tijuana, a Mexican city bordering the US, in hopes of circumventing travel restrictions and potential security issues amid the war in the Middle East.

Even so, the US authorities only allow the team to enter US soil a day before a match and the players are expected to leave again after the match wraps up. Iran's request to fly to Los Angeles two days before their game against Belgium on Sunday was turned down.

Iranian football officials now argue these restrictions are unfair to their team, as they are not providing them with an equal playing field as other teams. They also said the goal of their request was "to adapt to the match conditions, complete their final training session, and finalize preparations."

"Despite having submitted its preparation schedule for the tournament well in advance, Iran's national football team has once again encountered restrictions imposed by the organizers," the spokesman said.

Iranian officials have said that 15 of their football officials have been denied visas to the US.

Following reports of several Israeli soldiers killed in Lebanon, Israeli Prime Minister Benjamin Netanyahu said his country would exact "a very heavy price" from the Iran-aligned Hezbollah.

"Following the heinous attack by Hezbollah, which is a flagrant violation of the ceasefire, I instructed the IDF last night to strike Hezbollah with force," he said.

Netanyahu also restated his previous claims about Israel's occupation of parts of southern Lebanon, saying that the IDF will stay in the neighboring country "as long as necessary."

The Israeli military said Israel lost four soldiers and Lebanese media reported a total of 18 people were killed in Israeli strikes amid heavy fighting.

Netanyahu claimed Israel "struck over 80 terror targets and eliminated dozens of terrorists." That figure from Netanyahu could not be independently verified.

"I think it's regrettable. But, given the nature of this scenario, it’s not entirely unexpected,” Ireland’s Prime Minister Michael Martin said upon arriving for the second day of the EU summit in Brussels. “I would urge continued dialogue and adherence to the agreement because the world needs stability and peace.”

Martin's comments come after news broke that the United States and Iran postponed their planned negotiations in Switzerland. 

It’s somewhat dulled the general optimism here at the EU summit in Brussels, after the successful G7 summit in Evian. There, they had seized the moment: US President Donald Trump was promised European political support for the newly negotiated Memorandum of Understanding with Iran, whilst they were also able to convince him to increase pressure on Russian President Putin so that peace talks could potentially finally begin over ending the war in Ukraine.

Strategic Stakes for Europe and Ukraine

For the European Union, the stakes go beyond the immediate question of nuclear safeguards and the security of critical shipping routes, such as the Strait of Hormuz.

The G7 summit in Evian showed how closely the conflicts in Iran and in Ukraine are interconnected.

With a solution to the Iran war and the opening of the Strait of Hormuz on the horizon, the tense situation for the global economy could also ease, particularly when it comes to oil prices. This easing, in turn, would allow US President Trump to reinstate oil sanctions against Russia. As he promised in Evian.

The key question for Europe remains: When might a diplomatic window for peace talks with Russia open, and just how might it take shape?

The US Defense Department is set to ask US lawmakers for $80 billion (nearly €70 billion) to cover the costs of the Iran campaign and expenses such as farm ⁠and disaster relief, the Wall Street Journal reported on Friday.

The US-based paper said a formal request to US Congress could be sent in the following days.

The exact cost of the war the US waged in Iran is not clear. In April, a Pentagon official estimated it at $25 billion in a report by the Reuters new agency.

In 2026, the US military was given approximately $1 trillion dollars for its budget, with the Trump administration pushing to boost military spending to around $1.5 trillion in 2027.

A ship owned by a Japanese company with three Japanese crewmembers managed to leave the Gulf through the Strait of Hormuz on Friday after being stuck in the region due to the fighting between the US and Iran.

The vessel is an oil tanker sailing under a Liberian flag, and is currently sailing towards Japan. 

With the tanker's exit, all vessels linked to Japan and having Japanese sailors onboard have evacuated the Gulf, according to the Japanese Foreign Ministry.

"In light of the signing of the Memorandum of Understanding between the United States and Iran, the Government of Japan will continue to make every diplomatic effort towards the swift reestablishment of free and safe navigation through the Strait of Hormuz," the Japanese diplomats said.

Until last night sources were telling us US-Iran talks would be going ahead in Switzerland, with a question mark over exactly when.

But this morning we woke up not only to views of Swiss mountains so high they're still snow-capped when the June sun feels baking at street level, but news from DC that JD Vance has cancelled his trip, for now at least.

The postponement is not a surprise in this week of diplomatic twists and turns. Ceremony, no ceremony, talks, no talks, will they, won’t they? There's been a litany of mixed messages.

Qatari and Pakistani mediators remain ready to host talks, at a technical or high level. And Switzerland says "relevant preparatory work" is continuing at the Qatari-owned mountain resort which was due to host talks.

You've heard about the fog of war, undoubtedly more dangerous. But this is the fog of potential peace talks, and the stakes are still high.

Israel's National Security Minister Itamar Ben-Gvir urged the country to "go berserk" after the IDF reported four Israeli soldiers were killed in Lebanon.

"For every tear of an Israeli mother, a thousand Lebanese mothers must weep. All of Lebanon must burn!" the far-right politician said in an online post.

Lebanon has emerged as a key flashpoint as Washington hopes to wrap up the Iran war, while Israel insists on keeping troops in the neighboring country and pursuing their offensive against Hezbollah. Just hours before Ben-Gvir's post, Lebanon's state-run NNA agency reported 16 people killed in the Israeli strikes overnight.

"With all due respect to the Americans, Israel must make it clear to the entire world that the blood of our sons and the security of our citizens are not not up for bargaining." Ben-Gvir wrote on Friday.

"In the Middle East, you don’t win with measured responses and restraint — you need to go berserk."

With fighting in Lebanon intensifying, Israel has reported four of its soldiers were killed in the clashes, the first confirmed deaths since the US and Iran announced a peace deal last weekend.

One of the soldiers was a lieutenant colonel, according to the Israel Defense Forces.

Israel is currently controlling parts of Lebanon, with the proclaimed goal of neutralizing the Lebanon-based Hezbollah militia. 

The fledgling peace deal between Washington and Tehran calls for the end of fighting in Lebanon and for the country's sovereignty and territorial integrity to be respected. But Israel is not a party to the deal and has rejected the calls to withdraw.

Also on Friday, French Foreign Minister Jean-Noel ​Barrot urged the US to put pressure on Israel to halt its offensive in Lebanon. According to Barrot, Paris is working to organize an international conference which would provide support to the Lebanese army.

At least 16 people in Lebanon were killed in Israeli airstrikes overnight, Lebanese state-run news agency NNA reported on Friday morning.

The report described the attacks on multiple towns as among the heaviest bombardment in recent weeks.

Meanwhile, the Israeli military said they were responding to ceasefire violations from the Iran-backed Hezbollah militia. Israel, the US, Germany and many other nations consider Hezbollah a terrorist group. 

"During the night, the army struck and continues to strike Hezbollah terrorists and infrastructure in several areas in southern Lebanon," the IDF said in a statement.

Amid fragile peace negotiations between the US and Iran, Prime Minister Benjamin Netanyahu said Israeli forces will not withdraw from Lebanon until the Hezbollah threat is neutralized.