Israel and Hezbollah continued to exchange fire on June 3 despite US President Donald Trump announcing what he called an understanding to halt hostilities, raising fresh questions over the durability of efforts to contain tensions along the Israel-Lebanon border.

The Israeli military said its air defences intercepted two projectiles launched from Lebanon into northern Israel. It renewed evacuation warnings for Nabatiyeh, a major city in southern Lebanon, less than 24 hours after Trump said the two sides had agreed to stop fighting.

"In light of the Hezbollah terrorist organization's violation of the ceasefire agreement, the IDF is compelled to act against it with force," an Israeli military spokesperson posted on X, as the military said it was preparing strikes on the area.

Lebanon's state-run National News Agency reported fresh Israeli air strikes in southern Lebanon, including 50 missile strikes despite the ceasefire announcement.

Trump announced the proposed arrangement on June 1 after a phone call with Israeli Prime Minister Benjamin Netanyahu. Writing on Truth Social, he said Israel and Hezbollah would stop fighting "for ETERNITY!" and that no troops would go to Beirut, with any en route already turned back. Israel had threatened to strike the Lebanese capital in retaliation for Hezbollah attacks on northern Israel, but backed off under pressure from the Trump administration.

Al-Monitor, citing a well-placed Israeli source, reported that Trump had instructed Netanyahu to suspend planned strikes on Dahiyeh, the southern suburbs of Beirut widely regarded as a Hezbollah stronghold.

Trump said he had held a good call with Hezbollah through highly placed representatives and that the group had agreed all shooting would stop, though he gave no further detail on the contacts.

The office of Lebanese President Joseph Aoun said Hezbollah had accepted a proposal conveyed by US Secretary of State Marco Rubio the previous week calling for a mutual cessation of hostilities. Under the arrangement, Israeli strikes on Beirut's southern suburbs would cease in exchange for Hezbollah halting attacks on Israel, before the framework expanded to cover all Lebanese territory.

The conflict has proved a major stumbling block in US negotiations with Tehran, which has insisted on a halt to the Israeli assault on Lebanon as a precondition for a ceasefire with Washington. On June 1, Tehran announced a halt to negotiations with the White House over Israel's refusal to respect the ceasefire. On June 2 Trump said Israel had stopped its attacks, while Netanyahu said the same day that the campaign was continuing.

Iranian Foreign Minister Abbas Araghchi said the ceasefire between Tehran and Washington should be understood as covering all fronts, including Lebanon.

"Any violation of this ceasefire on one front shall be considered a violation of it across all fronts," Araghchi wrote on X.

Earlier in the week, Israel expanded its campaign north beyond the Litani River and captured Beaufort Castle, the Crusader fortress dominating the ridge above the river, marking its deepest advance into Lebanon in 26 years.