Israel's military said it carried out attacks on Iran-aligned Hezbollah militants in Lebanon on Friday, potentially undermining hopes that a prolonged U.S.-Iran ceasefire can be forged in potential weekend talks.
A spokesman for Iran's foreign ministry has suggested that officials from the country may not attend peace negotiations in Pakistan, due to begin on Saturday, should Israel continue hitting Hezbollah targets in Lebanon.
American and Iranian officials have been at odds over whether Lebanon was included in a ceasefire deal notched this week.
On Thursday, Israeli Prime Minister Benjamin Netanyahu said that he had ordered his government to start peace talks with the Lebanese government over a possible disarmament of Hezbollah. However, Netanyahu stressed that there remains "no ceasefire" in Lebanon.
More than 300 people were killed by Israeli strikes on Thursday, according to Lebanese authorities quoted by The New York Times.
U.S. President Donald Trump has said that he has asked Netanyahu to limit attacks on Lebanon, as he looks to prevent a fragile two-week ceasefire with Iran from collapsing.
All the while, tanker traffic through the Strait of Hormuz is still near a virtual standstill, with Reuters reporting that shipping through the narrow waterway off of Iran's southern coast was well below 10% of normal volumes on Thursday despite the ceasefire. Iran, whose chokehold on the strait has threatened the flow of around a fifth of the world's oil, has told vessels that they must keep to its territorial waters while making any sailings.
Several Asian countries are heavy importers of crude products which traverse the strait, while Europe uses natural gas from Persian Gulf nations which have been targeted by Iranian attacks.
Bombardments of Saudi energy facilities have also slashed the kingdom's oil output capacity by about 600,000 barrels per day and throughput on its East-West Pipeline by roughly 700,000 barrels per day, Saudi state news agency SPA reported on Thursday.
The prospect of slow protracted shipping through the Strait of Hormuz and a decline in production in Saudi Arabia, a major crude center in the Middle East, pushed up oil prices.
Trump suggested that Iran is "doing a very poor job" of allowing oil to flow through the strait and warned Tehran from collecting fees from some ships making crossings. The Wall Street Journal, citing an Iranian lawmaker, said the country was raking in $2 million from tolls charged on some ships.