A ceasefire between Israel and Lebanon took effect early Thursday, as U.S. officials signaled cautious optimism about broader regional de-escalation, including the possibility of renewed diplomatic engagement with Iran. President Donald Trump said a new round of talks between Washington and Tehran could take place as soon as the weekend, raising the prospect of a wider agreement aimed at ending the ongoing conflict that began in late February.
Speaking to reporters outside the White House, Trump indicated that negotiations with Iran had made progress, stating, “We’re going to see what happens. But I think we’re very close to making a deal with Iran.” He added that Tehran had proposed foregoing nuclear weapons development for more than two decades, an issue that has remained central to recent negotiations. Talks held in Islamabad the previous weekend highlighted continued disagreements over Iran’s nuclear program, though both sides have signaled some willingness to compromise.
President Trump on Iran:
— The American Conservative (@amconmag) April 16, 2026
"We're very close to making a deal with Iran. If that happens, oil goes way down, prices go way down, inflation goes way down. And much more importantly, you won't have nuclear holocaust." pic.twitter.com/TTprcjUIxO
The broader conflict, which began on February 28 with a joint U.S.-Israeli strike, has resulted in significant casualties and triggered volatility in global energy markets. Oil prices surged amid concerns over supply disruptions, particularly tied to instability around the Strait of Hormuz, a critical transit point for global oil and gas shipments. The economic consequences have added pressure on the U.S. administration to secure a diplomatic resolution while maintaining military readiness.
In Lebanon, the ceasefire’s implementation was marked by celebrations in Beirut, where gunfire and rockets were heard shortly after midnight. Despite the initial pause in fighting, reports soon emerged that Israeli artillery continued shelling areas in southern Lebanon, underscoring the fragile nature of the agreement. The Israeli military also warned civilians against returning to areas south of the Litani River, citing ongoing concerns about Hezbollah activity, while the group itself reported that its final attacks occurred just minutes before the ceasefire deadline.
🇮🇷🇱🇧⚔🏴☠🇺🇸 Intense celebratory gunfire was heard lighting up the skies over the southern suburbs of Beirut, Lebanon 🇱🇧🎉 pic.twitter.com/sxmkonw8Wk
— War Updates (@WarUpdates) April 16, 2026
Trump suggested that the cessation of hostilities in Lebanon could help pave the way for a broader agreement with Iran, emphasizing both economic and security implications. “And if that happens, oil goes way down, prices go way down, inflation goes way down, and … much more importantly than even that, you won’t have a nuclear holocaust,” he said. He also noted that the current diplomatic momentum followed weeks of sustained military pressure, describing it as “a combination of about four weeks of bombing, and a very powerful blockade.”
Trump: "We've very close to making a deal with Iran. If that happens, oil goes way down, prices go way down, inflation goes way down. And much more importantly, you won't have nuclear holocaust." pic.twitter.com/Oqyr3H8DaP
— Aaron Rupar (@atrupar) April 16, 2026
Diplomatic efforts are continuing on multiple fronts, with Trump confirming “excellent conversations” with Israeli Prime Minister Benjamin Netanyahu and Lebanese President Joseph Aoun. He said both leaders may be invited to the White House for further discussions in the coming weeks. In parallel, U.S. Vice President JD Vance, Secretary of State Marco Rubio, and Joint Chiefs Chairman Dan Caine have been tasked with advancing negotiations aimed at achieving a longer-term settlement between Israel and Lebanon.
Key issues remain unresolved, particularly regarding Iran’s nuclear program and the status of its enriched uranium stockpile. While the United States has pushed for the removal of highly enriched uranium from Iran, Tehran has demanded sanctions relief in return. Mediation efforts led by Pakistan have reportedly made progress on these points, though significant differences persist. U.S. Defense Secretary Pete Hegseth warned that military operations could resume if a deal is not reached, while regional officials indicated that any reopening of the Strait of Hormuz would depend on a permanent ceasefire and binding international guarantees against further conflict.