Hezbollah on Wednesday hailed what it called its ally Iran's victory over Israel after 12 days of war, declaring it the start of a "new historical phase".

In a statement, Hezbollah offered its "most sincere congratulations" to the Islamic republic, praising its "glorious divine victory".

Iran's nuclear facilities were "badly damaged" in U.S. and Israeli strikes during the 12-day war with Israel, foreign ministry spokesperson Esmaeil Baqaei told Al Jazeera English on Wednesday.

The Lebanese Army said it has arrested the suspected leader of the Islamic State group in Lebanon after implicating him in planning several operations.

The World Bank announced on Wednesday it had approved a $250 million project to support Lebanon's reconstruction and recovery following last year's devastating war between Israel and Hezbollah.

Israel's Prime Minister Benjamin Netanyahu said it was a "very difficult day" Wednesday after seven soldiers were killed in combat in Gaza, where Israel's war against Hamas was in its 21st month.

"It is a very difficult day for the people of Israel," Netanyahu wrote on X.

U.S. President Donald Trump said on Wednesday that the ceasefire that ended 12 days of war between ally Israel and Iran was going "very well", while leaked U.S. intelligence cast doubt on the damage caused by U.S. strikes to Tehran's nuclear program.

U.S. President Donald Trump said Wednesday that "great progress" was being made to end the Israel-Hamas war in Gaza as a new ceasefire push began more than 20 months since the start of the conflict.

Iran said Tuesday it had begun efforts to rebuild residential areas and public infrastructure damaged in Israeli strikes over 12 days.

"We witnessed attacks on residential areas, as well as on scientific centres, research institutes, healthcare facilities and civilians... therefore we are facing a major task ahead in terms of reconstruction," government spokeswoman Fatemeh Mohajerani told state TV, adding that the authorities have begun to assess the extent of the damage.

Oil prices accelerated losses on Tuesday after U.S. President Donald Trump said China can continue to buy Iranian oil, providing reassurance over crude supply in Middle East.

International benchmark Brent slumped 4.5 percent to $68.26 per barrel, while the main US crude contract WTI shed 4.6 percent to $65.34, after plunging earlier over a fragile Iran-Israel ceasefire.

Israeli Prime Minister Benjamin Netanyahu's office said the country "refrained" from further strikes on Iran on Tuesday after he spoke with U.S. President Donald Trump in a call.

Israel accused Iran of violating a fragile ceasefire agreement on Tuesday morning by firing two missiles, with Defense Minister Israel Katz immediately promising "to respond forcefully".