Iran and Israel Dispute U.S. Deal Terms as Airstrikes Continue in Lebanon

A diplomatic impasse has emerged over the interpretation of a U.S.-Iran memorandum of understanding, with Iran's Foreign Minister Abbas Araghchi asserting that the agreement requires Israeli forces to withdraw from southern Lebanon and prohibits further Israeli strikes on Iranian territory. Israeli officials have rejected this interpretation, with National Security Minister Itamar Ben-Gvir stating that "Trump's agreement does not bind us" regarding troop withdrawal. The dispute has unfolded as Israeli airstrikes continue in southern Lebanon, with Lebanon's National News Agency reporting strikes on the Nabatieh al-Fawqa area, Kfar Tebnit, and the town of Ansariyeh on Wednesday, despite the proposed memorandum.

The memorandum is scheduled to be formally signed on Friday at Switzerland's Burgenstock resort, after which direct talks between the U.S. and Iran are expected to commence on Iran's nuclear program and other contentious issues. Israeli troops have occupied a wide section of southern Lebanon for approximately three and a half months, displacing tens of thousands of residents. President Trump expressed frustration on Tuesday with Israeli Prime Minister Benjamin Netanyahu's handling of Israel's conflict with Hezbollah, characterizing it as a "minor war" that is complicating U.S. efforts to resolve the broader Iran conflict.

Separately, the agreement appears to include provisions for immediate sanctions relief on Iranian oil sales. TankerTrackers reported that Iranian tankers carrying a combined 3.8 million barrels of crude oil have exited a U.S. Navy blockade perimeter in the Strait of Hormuz, marking Iran's first crude oil exports in two months. According to the Wall Street Journal, the U.S. will allow Iran to immediately begin selling oil and fuel under the deal, with the sanctions waiver taking effect after the memorandum is signed.

In related developments, President Trump invoked the Defense Production Act on Tuesday to address constraints in munitions production. The presidential memo delegates authority to the Defense Secretary to accelerate production of munitions, missiles, and related equipment, citing concerns that supply chain fragility and production bottlenecks could impair the nation's ability to meet military requirements amid intensified conflict concerns.