Another dramatic reversal has occurred in the Middle East this Dragon Boat Festival.
During the day on June 19th, the interruption of U.S.-Iran negotiations sent global markets tumbling. However, by the evening, the situation took another turn.
A senior U.S. official reportedly informed the media that Israel and Lebanon have agreed to a ceasefire, set to commence at 4 p.m. local time on Friday, June 19th.
The official stated, "Hezbollah and Israel have agreed to a ceasefire," adding that U.S. and Qatari negotiators facilitated the agreement with Iran's assistance. "To our understanding, following the earlier exchange of fire today, Israel and Hezbollah are now in a ceasefire."
Following this news, market optimism resurfaced, with futures for the three major U.S. stock indices experiencing a brief surge, narrowing their earlier losses.
Furthermore, Israel indicated it has entered a ceasefire state and will continue to maintain a presence in the security zone, while reserving the right to retaliate if attacked.
Two Lebanese Hezbollah sources stated that Hezbollah has implemented the ceasefire agreement originally scheduled to take effect at 4 p.m. (9:00 PM Beijing Time).
Crude oil markets witnessed a rapid plunge.
Gold and silver also recouped some of their earlier losses.
Previously, Iran had postponed the timing for talks with the United States on a permanent peace agreement. The escalation of conflict in southern Lebanon posed a potential setback to former President Trump's efforts.
Negotiations originally scheduled for Friday in Switzerland were postponed due to the outbreak of conflict between Israel and the Iran-backed Lebanese Hezbollah forces.
Iran had previously insisted on a Lebanese ceasefire as part of finalizing an interim peace deal with the U.S. this week. Due to the renewed hostilities, Iran did not send a delegation to the talks. The U.S. Vice President-designate, Vance, who was slated to represent the U.S., also did not depart. It remains unclear when the talks will be reconvened.
This delay dealt a blow to former President Trump. Despite widespread criticism that he had conceded too much to Iran regarding economic benefits and sanctions relief, Trump signed a memorandum of understanding with Iran on Wednesday. He claimed the agreement would help reopen the Strait of Hormuz, crucial for global oil and gas transportation, thereby averting a global economic crisis.
On Friday, Trump posted on his social media platform, "It's not that we are desperate to meet, it's Iran. They are finished! We will see these 60 days through. They won't get a single dollar, not a dime!"
U.S. Vice President-designate Vance issued a stern warning to Israel, telling media that day he wanted to remind the Israeli government of two points: first, that former President Trump was "the only world leader currently sympathetic to Israel," and Israel should not attack "its sole remaining powerful ally in the world"; second, that two-thirds of the defensive weapons protecting Israeli territory over the past three months were "made in the U.S. and paid for by the U.S."
Iran condemned Israel's continued attacks on Lebanon, stating the U.S. bears direct responsibility.
According to a CCTV news report, on June 19th local time, Iranian Foreign Ministry spokesperson Bagheri strongly condemned Israel's aggressive and terrorist actions against various regions in Lebanon. He also warned that continued Israeli aggression would have serious and immediate consequences for regional peace and security.
Bagheri stated that the United States bears direct responsibility in the current situation, referencing the Iran-U.S. memorandum of understanding. A clause explicitly stipulates that a Lebanese ceasefire is an inseparable part of "comprehensively ending the war on all fronts." He emphasized that Iran will take all necessary measures to safeguard its own interests, security, and rights, as well as those of its allies.
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