Israel bucks U.S.-Iran peace agreement as officials press Netanyahu for restraint in Lebanon

As U.S. and Iranian officials moved forward with an initial agreement to halt hostilities, Israel signaled that it would not withdraw from areas it has seized in Lebanon, even as Trump administration officials described restraint on that front as a condition for the deal’s implementation.

Israeli Defense Minister Israel Katz stated June 15 that the nation would not withdraw its troops from land Israel has captured in Lebanon. Israeli Prime Minister Netanyahu also stated in an address that the Trump administration’s deal with Iran is President Donald Trump’s “decision” and not Israel's. Israel “has its own interests,” Netanyahu said, vowing to continue Israel’s battle with Iran-backed Hezbollah militants in Lebanon.

A memorandum from the White House issued the same day stated that the agreement “ends military operations on every front. For the first time, that explicitly includes Lebanon, with a commitment to both Israel and Lebanon’s sovereignty and territorial integrity,” The Washington Free Beacon’s Adam Kredo reported.

“The Israel-Hezbollah fight has been the region’s most dangerous flashpoint,” the document explained. “President Trump brought it inside the peace instead of leaving it to reignite the war. And it has teeth. The ceasefire has to hold before anything else moves forward. The end of the fighting is not a hope. It is a precondition."

The disagreement between the U.S. and Israel comes after weeks of mounting tension between Trump and Netanyahu. June 7 and June 8, Trump repeatedly berated the prime minister both in person and in comments to the press for continuing hostilities against Iran and Lebanon even as sensitive U.S. negotiations for peace were nearing completion. 

"I call the shots," Trump said June 7, as Zeale News reported. "Bibi does not." The President also told an Israeli outlet that he had told Netanyahu: "You better be very careful what you do, because you could be left alone facing Iran very soon.” 

The remark came just days after Trump told Netanyahu during a phone call that the President later confirmed, "You're f***ing crazy. …Everybody hates Israel because of this,” referring to Israeli military aggression.

A week and a half later, after the White House announced June 13 that administration officials and Iranian leaders were slated to sign an agreement the following day, Israel again launched strikes in Beirut, Lebanon – a move that Trump said made him “very angry.”

“Why did Bibi have to do a f***ing attack?” the President said in a call with Axios. “I was so pissed off. I let him know. He has no f***ing judgement. I let him know that.”

In a post on Truth Social, Trump said the Sunday morning attack “should not have happened” and called on all parties not to “blow” the chance at peace in the region.

Disputed Funding Reports

Opponents of the new agreement have raised alarm over a reported $300 billion reconstruction fund being made available to Iran as part of the deal. In the White House memo mentioned above, the administration rejected claims that taxpayers would be forced to carry the cost of the settlement. 

"The money Iran can access in the near term is Iran’s own frozen funds, not a dollar of American taxpayer money,” the memo stated. “Iran wanted tens of billions released up front for nothing. President Trump’s negotiators held the line, and Iran got access to its own money only, structured and tied to performance." 

"The headline benefits, full sanctions relief and reconstruction, are tied to the final deal and to Iran’s performance,” the document added. “No performance, no payoff. The reconstruction plan is built and funded with regional partners, not by American taxpayers, and unlocks only as Iran delivers."

Vice President JD Vance similarly reassured the public in a June 15 ABC News interview that Iran would not receive “one dollar” of U.S. taxpayer money.

Hours later, Trump stated on Truth Social that “The story that the U.S. is paying Iran 300 million Dollars is Fake News, put out by the Dumocrats!!!”