Israel and Lebanon agree US-brokered ceasefire

(Sharecast News) - Israel and Lebanon have agreed a US-brokered ceasefire, according to a joint statement released by the US State Department. The ceasefire is contingent on a complete cessation of fire from Iran-backed Hezbollah and the evacuation of all Hezbollah operatives from the South Litani area.

"The two sides agreed with the guidance of the United States to swiftly advance the creation of pilot zones in which the Lebanese armed forces will take exclusive control of the territory to the exclusion of all non-state actors," the US State Department said.

"These steps will enable progress towards a comprehensive peace and security agreement."

Israel and Lebanon will reconvene on 22 June "with a view toward reaching a comprehensive agreement", the US said, adding that it has agreed to continue facilitating communication between the two parties.

Rabobank pointed out: "Hezbollah, who operates independently from (and often against the interests of) the Lebanese Government, has not yet indicated that they agree to the terms of the ceasefire."

News of the agreed ceasefire sent oil prices lower and by 0752 BST, Brent crude was down 1% at $96.84 a barrel.