The Iran-backed Hezbollah group rejected a new cease-fire proposal in Lebanon on Thursday, while Israel signaled it would keep troops in the country, dealing a setback to U.S. President Donald Trump's efforts to end the conflict and advance broader diplomatic talks with Tehran.

Iran has tied any potential agreement with Washington to a cease-fire in Lebanon and has recently indicated it could become directly involved if Israel continues its military campaign.

However, Hezbollah leader Naim Qassem dismissed a U.S.-brokered deal negotiated between Israel and the Lebanese government to halt the fighting, noting that the group was not involved in the talks.

There was no immediate reaction from either Israel or Lebanon.

Speaking in Washington, Trump said he believed progress was being made and expressed hope for lasting peace in Lebanon.