Israel and Lebanon have agreed to a ceasefire on the condition that Hezbollah stops attacks, according to a joint statement released by the US State Department on Wednesday. The agreement includes the creation of pilot security zones inside Lebanon where Hezbollah operatives would be banned. However, despite the truce, Israeli drone strikes on Lebanon wounded several people on Thursday, including a family traveling in a car.
US House Passes War Powers Resolution
The US House of Representatives passed a war powers resolution on Wednesday, June 3, by a vote of 215 to 208, aimed at curtailing President Donald Trump's war with Iran. The resolution would require Trump to seek congressional approval or withdraw US forces from the conflict. However, the vote is largely symbolic, as any resolution would also need to pass the Senate and overcome an almost certain presidential veto.
Iranian Attacks on Kuwait and Bahrain
Iran launched drone and missile strikes on Kuwait and Bahrain early Wednesday, causing casualties and damage. At least one person was killed and several injured when an Iranian drone struck Kuwait International Airport, forcing its closure. Kuwait's air defenses intercepted over 30 missiles and drones, while Bahrain reported intercepting three missiles and several drones. Iran claimed it did not attack Kuwait Airport, blaming a US Patriot system error.
Oil Prices and Economic Impact
Brent crude prices fell on Thursday after the Israel-Lebanon ceasefire raised hopes for a broader end to the Iran war and the reopening of the Strait of Hormuz. However, the OECD warned that a prolonged disruption of energy supplies could cause a global recession and inflation, particularly affecting Asian economies dependent on Persian Gulf oil.
Diplomatic Tensions
US President Donald Trump confirmed he called Israeli Prime Minister Benjamin Netanyahu “f***ing crazy” during a heated phone call, but insisted their relationship is solid. Netanyahu downplayed the spat, calling it a tactical disagreement. Meanwhile, Iran's foreign minister said no tangible progress has been made in talks to end the war, and Iran reasserted control over the Strait of Hormuz.
