STORY: Lebanon and Israel said on Wednesday they had agreed to implement a ceasefire, following negotiations in Washington aimed at ending the conflict tied to wider regional tensions involving Iran.

Here's U.S. State Department Chief of Staff Daniel Holler:

"As a result of the U.S.-led negotiations, Israel and Lebanon agreed to the implementation of a ceasefire. The ceasefire is contingent on a complete cessation of Hezbollah fire and the evacuation of all Hezbollah operatives from the South Litani sector."

Under U.S. guidance, both sides also agreed to set up pilot zones where the Lebanese Armed Forces would take full control, removing all non-state armed groups.

The agreement builds on a previous truce reached in April that was extended in May, though violence had continued.

Israeli drone strikes killed at least six people in southern Lebanon on Wednesday, according to Lebanese security sources, while Israel said it intercepted what it described as hostile aircraft likely launched from Hezbollah.

A separate U.S.-brokered deal earlier this week had already led to a pause in attacks on Beirut's southern suburbs and cross-border fire.

Israel launched its offensive in March after Hezbollah fired across the border in support of Tehran.

Iran says any peace deal with the U.S. must also include a ceasefire for Lebanon.

Oil prices eased on Thursday morning in Asia falling by less than one percent, with crude hovering just below 100 dollars a barrel... as the ceasefire raised hopes for a broader deal to end the region's conflict.