Israel stands firm on troops in southern Lebanon, as Rubio seeks to sell peace deal in Middle East - Headlines news and analysis from Global Banking & Finance Review
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Israel stands firm on troops in southern Lebanon, as Rubio seeks to sell peace deal in Middle East

Published by Global Banking & Finance Review

Posted on June 24, 2026

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· Last updated: June 24, 2026

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Israel insists on troops in southern Lebanon as Rubio defends Iran deal in Middle East

Middle East Peace Talks and Regional Tensions

By Alexander Cornwell, Tala Ramadan and Jana Choukeir

Israel's Position on Southern Lebanon

TEL AVIV/DUBAI June 24 (Reuters) - Israel's defence minister said on Wednesday Israeli troops will not withdraw from southern Lebanon, highlighting a hurdle to Iran-U.S. peace talks, as the top U.S. diplomat tours the Middle East to win over allies sceptical about a proposed deal.

The United States and Iran signed an initial accord last week to end a war that has upended the Middle East and pressured global economies since the closure of the Strait of Hormuz, a transit point for a fifth of global oil and liquefied natural gas supplies.

Conflicting accounts have emerged over elements of the deal, which has prompted criticism of U.S. President Donald Trump at home and in the Middle East. Financial incentives for Iran, control of the Strait of Hormuz and Israel's parallel war in Lebanon have all been disputed, highlighting the fragility of the accord.

Security Zone and Political Statements

Israeli officials, including Prime Minister Benjamin Netanyahu and Defence Minister Israel Katz, have repeatedly said they will not pull troops out of southern Lebanon, where they say they have created a security zone to protect residents of northern Israel.

"The IDF is prepared ... and we are not retreating. We announced that in any case we are not withdrawing, and as of this moment — and this is a political achievement — there is no American demand for Israel to withdraw from Lebanon," Katz said in an onstage interview at a conference in Tel Aviv.

He made his comments as Lebanon and Israel discuss a U.S.-backed proposal at talks in Washington for Israeli forces to pull out of some of the territory it invaded in the war and hand it to Lebanese-army control.

Hezbollah Conflict and Iranian Demands

Israel has been battling Hezbollah in Lebanon since early March, after the militant group attacked Israel in support of Iran, and Tehran has made a cessation of hostilities there a central tenet of its demands in any peace deal with the U.S.

"For us, a ceasefire in Lebanon is as important as a ceasefire in Iran, and further, an end to the war in Lebanon is as important as an end to the war in Iran," Iran's parliament speaker Mohammad Baqer Qalibaf said on Wednesday in Baku during a meeting of the Parliamentary Union of the Organisation of Islamic Cooperation member states.

Recent Escalations

An Israeli drone strike on a car in southern Lebanon killed at least two people on Wednesday, Lebanese security and medical sources told Reuters.

The Israeli military told Reuters it was checking the reports. Earlier, it said its air force had struck two armed Hezbollah fighters near a zone controlled by Israeli troops in southern Lebanon. It was not immediately clear if the incidents were the same.

Rubio Seeks to Convince Regional Allies

The proposed peace deal has been met with scepticism in the Middle East, where many states came under attack from Iran during the war and view the accord as too generous to Tehran, including a $300 billion fund and the waiver of some sanctions.

U.S. Secretary of State Marco Rubio, on a tour of the region to try to allay concerns, held a working lunch on Wednesday with United Arab Emirates President Sheikh Mohammed bin Zayed Al Nahyan and other senior figures.

Rubio is also visiting Kuwait and Bahrain. Both nations host strategic U.S. military bases, and both were hit by an onslaught of Iranian missiles, resulting in civilian deaths and a heavy economic toll.

Economic and Nuclear Provisions

Trump said on Tuesday that unfrozen funds would be used to buy medical supplies and food from the U.S., supporting American farmers. Iran disputed this.

Conflicting reports have also emerged on agreed provisions relating to Iran's nuclear program. Trump said preventing Tehran from building a nuclear weapon was the central reason for starting the war on February 28. Iran has said it has no plans to do so.

Iran pushed back again on Wednesday after Trump said it had agreed to nuclear inspections into "infinity" as part of the initial accord.

Iranian Deputy Foreign Minister Kazem Gharibabadi reiterated on X that no meeting was held in Switzerland with International Atomic Energy Agency chief Rafael Grossi, despite Grossi's request, and said there were currently no plans to grant access to nuclear facilities that had been attacked or to nuclear materials.

He said such issues would be considered only within the framework of a final agreement and after the other side took practical steps to lift all sanctions.

Discussions on Future Management of Strait

Shipping has begun flowing through the Strait of Hormuz, leading to a fall in oil prices, although the longer-term operation and management of the waterway remains under discussion between Iran, Oman and other Gulf states.

Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani visited Muscat on Wednesday for talks with Oman on initiating negotiations on the waterway, a diplomat briefed on the talks told Reuters.

Transit Fees and Political Pressure

Gulf states are expected to push for no transit fees, but Iran could propose environmental, navigation and ⁠security fees, the diplomat said.

Trump, who is under political pressure from some hardliners in the Republican Party who also see the deal as soft on Iran, said on Wednesday the U.S. had been told by Iran there would be no tolls.

"Iran has informed the U.S. that, despite troublemaking Fake News reporting to the contrary, there are 'NO TOLLS, NO INSURANCE COSTS, & NO OTHER CHARGES OF ANY KIND BEING SOUGHT OR RECEIVED BY IRAN ON SHIPS TRAVELING THE STRAIT OF HORMUZ,'" Trump wrote in a social media post.

(Reporting by Lina Obeid, Alexander Cornwell, Jana Choukeir, Tala Ramadan; writing by Sharon Singleton; editing by Philippa Fletcher)

Key Takeaways

  • Defence Minister Israel Katz declared Israel will not withdraw its forces from the Lebanon security zone, reinforcing its stance amid a U.S.–Iran interim ceasefire framework that includes Lebanon (theguardian.com).
  • The U.S. and Iran signed a preliminary agreement to extend their ceasefire by 60 days, reopen the Strait of Hormuz, and resume nuclear talks, although many implementation details and long-term terms remain uncertain (axios.com).
  • Secretary of State Marco Rubio is engaging Gulf allies—including the UAE, Kuwait, and Bahrain—to secure buy-in for the accord, amid regional skepticism over its perceived generosity toward Tehran (apnews.com).

References

Frequently Asked Questions

Why is Israel refusing to withdraw troops from southern Lebanon?
Israel states its troops remain to maintain a security zone to protect residents in northern Israel and there is currently no American demand for withdrawal.
What is the significance of the US-Iran peace deal?
The US-Iran peace deal aims to end a war affecting the Middle East and global economies, though disputes remain over financial incentives, nuclear policies, and regional security.
What role is Marco Rubio playing in the Middle East peace process?
US Secretary of State Marco Rubio is touring regional allies, seeking support for the peace deal and addressing concerns over its terms and security implications.
How does the conflict affect vital oil transit routes?
The war has impacted the Strait of Hormuz, a key global transit point for oil and liquefied natural gas, raising concerns over energy supplies and economic stability.
What are Iran's demands regarding the conflict in Lebanon?
Iran insists that a ceasefire in Lebanon is as important as in Iran itself, making it central to conditions in their peace negotiations with the US.

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