Key Takeaways:
- Trump secured a de-escalation deal between Israel and Hezbollah on Monday
- Israel agreed not to send troops to Beirut and reversed troop movements
- Hezbollah committed to halting all attacks on Israel in exchange
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Trump brokers Israel-Hezbollah truce after 3,400 killed in Lebanon
President Donald Trump secured a de-escalation agreement between Israel and Hezbollah, with both sides pledging to halt hostilities and Israel reversing troop movements toward Beirut.
President Donald Trump brokered a de-escalation agreement between Israel and Hezbollah on Monday, securing commitments from both sides to halt hostilities and averting an Israeli ground offensive into southern Beirut.
"There will be no Troops going to Beirut, and any Troops that are on their way, have already been turned back," Trump said on Truth Social after what he described as a "very productive" call with Israeli Prime Minister Benjamin Netanyahu.
Hezbollah, through intermediaries, agreed to stop all attacks on Israel in exchange for Israel refraining from strikes on Beirut's southern suburbs, according to Trump. The breakthrough followed a weekend of intensified fighting that saw Israeli forces capture the 900-year-old Beaufort Castle — their deepest push into Lebanon in 26 years — and order strikes on the Hezbollah-controlled Dahiyeh district, triggering fresh waves of displacement.
The truce removes an immediate risk of a full-scale Israeli invasion of Beirut, a scenario that threatened to draw in Iran directly and derail broader US-led diplomatic efforts to end the Iran conflict. Iran's foreign ministry said Monday that a Lebanon ceasefire was an integral part of any deal, linking the two theaters.
The conflict erupted on March 2 when Hezbollah opened fire on Israel in solidarity with Iran as it came under US-Israeli attack. Since then, more than 3,400 people have been killed in Lebanon and over 1 million displaced, according to Lebanese authorities. Israel reports 24 soldiers and four civilians killed over the same period.
US-led mediation hits hurdles
The US proposal, advanced by Secretary of State Marco Rubio in calls with Lebanese President Joseph Aoun and Netanyahu, envisioned a gradual de-escalation: Hezbollah would cease all attacks first, and Israel would refrain from escalation in Beirut in return. Lebanese Parliament Speaker Nabih Berri, a Hezbollah ally who claimed to guarantee the group's commitment, rejected the piecemeal approach and demanded a full and comprehensive ceasefire instead.
"The question is, who will compel Israel to stop its aggression?" Berri said, according to Lebanese media.
The agreement announced Monday bypasses that impasse by having Trump directly extract commitments from both sides. Trump said he communicated with Hezbollah "through highly placed Representatives."
Market implications
The de-escalation reduces geopolitical risk premium in the Middle East, a region that accounts for about 30 percent of global crude oil supply. Brent crude had been pricing in a widening conflict as Israeli forces pushed deeper into Lebanon and seized Beaufort Castle over the weekend. A sustained truce could see oil prices retreat and safe-haven assets such as gold and the US dollar give back recent gains.
The last time Israel and Hezbollah reached a US-brokered ceasefire — the 2006 UN Security Council Resolution 1701 — it held for nearly two decades until the current conflict erupted in March. Whether this agreement proves more durable depends on verification mechanisms and whether it is folded into a broader resolution of the US-Iran confrontation.
This article is for informational purposes only and does not constitute investment advice.
[1] Lebanese President's Office: Hezbollah has committed to stopping strikes against Israel[2] Trump announces Israel and Hezbollah agreement to reduce fighting[3] Israel agrees not to send troops to Beirut, says Trump[4] Israeli forces seize castle, make deepest push inside Lebanon in 26 years, complicating Iran deal[5] US says Hezbollah blocking efforts to secure Israel-Lebanon truce
