Israel's air force struck a Lebanese village on Friday following warnings for several areas of imminent attacks against Hezbollah, after the Iran-backed militants rejected a truce brokered by the United States.

The U.S.-brokered agreement requires Hezbollah, which Iran backs, to stop firing first. But the group, not party to the talks, rejected the conditions as a virtual surrender.

Hezbollah’s leader said the Iran-backed group, which was not included in US-brokered talks, had rejected a deal worked out between Israel and the Lebanese government.

The U.S. and Iran have made little progress in talks over an interim peace deal this week, with the sides seeing their worst clashes since an April ceasefire began and fighting continuing in Lebanon.

Lebanese President Joseph Aoun accused Iran of meddling in Lebanon's affairs and using the country as a bargaining chip in talks with the US, while urging Hezbollah and Israel to pursue diplomacy over continued conflict.

DUBAI — Iran has reaffirmed support for its Lebanese ally Hezbollah and demanded Israel withdraw from southern Lebanon, underscoring complications facing an interim deal to end the broader conflict between the US and Iran. Iran has made a ‌cease ...

Brent crude and WTI prices were shrugging off fighting in Lebanon as the market concentrates on the U.S.-Iran peace talks.

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