Iran announces ‘end of military operations’ against Israel

Iran’s military has ceased strikes against Israel, the Ministry of Foreign Affairs told CNBC on Monday, but Tehran warned it would resume hostilities if the IDF continues operations in Lebanon.

Iran and Israel traded strikes on Sunday night for the first time since a ceasefire was agreed between the U.S. and Iran in April. The Islamic Republic fired missiles towards northern Israel after accusing Jerusalem of repeatedly violating the truce through its strikes on Lebanon, which included an attack on Beirut’s southern suburbs on Sunday. Israel said it carried out a “large-scale strike on strategic defense systems” in response.

Earlier on Monday, U.S. President Donald Trump insisted the negotiations would continue, despite the fragile truce spilling over.

“Both sides, Israel and Iran, are looking to do an immediate CEASEFIRE! Final negotiations on “Peace” are proceeding, subject to ignorance or stupidity getting in its way. The Blockade will remain in place, and in full force and effect, until a “Final Deal” is reached. Things should move quickly,” Trump wrote on Truth Social. The president earlier posted that both countries should stop “shooting.”

In a phone call with the Financial Times on Sunday, Trump said Israeli Prime Minister Benjamin Netanyahu “won’t have any choice” but to accept a deal that the U.S. negotiates with Iran, because the U.S. president “calls the shots.”

Though it is less clear whether Iran still intends to make a deal with the U.S.

Earlier, an Iranian official linked to the talks between Washington and Tehran told MS NOW that “a deal with President Trump is no longer feasible at this stage.”

The official blamed Trump for the situation in Lebanon and the current escalation in hostilities.

As the dust settled, oil prices pulled back from session highs, having surged more than 5%.

— CNBC’s Garrett Downs also contributed to this report.