Israel launched its heaviest strikes yet on Lebanon, killing hundreds and escalating regional tensions despite a recently announced ceasefire.

Iran warned that continued attacks make peace talks with the United States unlikely, with officials calling negotiations “unreasonable.”

Both Israel and the United States said the ceasefire does not apply to Lebanon, while Prime Minister Benjamin Netanyahuvowed military operations would continue.

Disagreements over Iran’s nuclear program remain a major obstacle, with both sides presenting conflicting claims about uranium enrichment, Reuters has reported.

Despite ongoing conflict and uncertainty, global markets reacted positively, with stocks rising and oil prices dropping sharply.