The United States and Iran both warned they were ready for war as the clock ticked down on a ceasefire on Tuesday, with uncertainty over whether talks that President Donald Trump had announced would resume in Pakistan.

The White House said Vice President JD Vance was ready to fly back to Islamabad, which was preparing for a second round of talks on ending the war that has engulfed the Middle East and shaken global markets.

Israeli Defense Minister Israel Katz said Tuesday that his country's campaign in Lebanon relied both on military and diplomatic pressure to disarm Iran-allied Hezbollah.

"The overarching goal of the campaign in Lebanon is to disarm Hezbollah and remove the threat to the northern communities (of Israel), through a combination of military and diplomatic measures," Katz said during a ceremony marking Israel's national day of remembrance for fallen soldiers and victims of terror.

Lebanese official media said an Israeli strike hit a town in the country's south on Monday despite a 10-day ceasefire in force between Israel and Hezbollah.

The state-run National News Agency said that "an enemy drone targeted the vicinity of the Litani River in the town of Qaqaiyat al-Jisr," without immediately reporting casualties.

Iran said it had yet to decide whether to attend a new round of peace negotiations with the United States, as Washington's delegation prepared to depart for Pakistan on Monday.

France is investigating allegations that two Lebanese banks transferred billions of dollars out of the country despite strict capital controls during a financial crisis, a source close to the case and lawyers said Monday.

Israel says it has established a "Yellow Line" in south Lebanon near the border, where its forces are operating despite a 10-day ceasefire with Iran-backed Hezbollah.

Hezbollah lawmaker Hassan Fadlallah said on Monday that it was in President Joseph Aoun's interest to withdraw from direct talks with Israel, while adding that his group wanted the current ceasefire to last.

"It is in the interest of the state, the interest of Lebanon, the president of the republic and the government to move away from the path of direct negotiation and return to a national understanding about the best option for Lebanon," he told AFP in an interview

President Joseph Aoun said Monday that planned talks with Israel aim to end "hostilities" and the Israeli occupation in the south, as he named ex-ambassador Simon Karam to lead a delegation.

"The choice to negotiate aims to stop hostilities, end the Israeli occupation of southern regions and deploy the (Lebanese) army all the way to the internationally recognized southern borders" with Israel, Aoun said in a statement.

Chinese President Xi Jinping told Saudi Arabia's Crown Prince Mohammed bin Salman in a phone call on Monday that "normal traffic" through the vital Strait of Hormuz "should be maintained", state media said.

Xi also stressed in the call that China "advocates for an immediate and comprehensive ceasefire", state broadcaster CCTV said.

Lebanon's state-run National News Agency (NNA) said Monday that Israel was destroying houses in several border villages including Qantara, al-Bayyada, Shamaa, Naqoura and Mais al-Jabal, amid shelling on Houla and airstrikes on al-Tiri and Burj Qalaway.

Israel said its military had been instructed to use "full force" against threats in Lebanon despite a truce, and vowed to level homes allegedly used by Hezbollah, with state media reporting demolitions were underway on Sunday.