The EU's top diplomat has said the bloc will gauge the willingness of member states to take measures against Israel, after Spain re-upped demands to suspend a cooperation deal.

Foreign ministers from the 27-nation bloc are expected to discuss the matter at a meeting in Luxembourg Tuesday after a call from Spain's Prime Minister Pedro Sanchez.

Israeli troops were demolishing Tuesday houses, schools and buildings in the southern border towns of Khiam, Bint Jbeil, Beit Leef, Shamaa, al-Bayyada and Naqoura, in an area in south Lebanon below what Israel called the "Yellow Line".

The Israeli military also dropped thermal balloons overnight over border villages. On Tuesday, Israeli warplanes fired two missiles on Wadi al-Hujeir in south Lebanon near the "Yellow Line".

The U.N. Security Council on Monday condemned the recent killing of a French peacekeeper in Lebanon, whose death France has blamed on Hezbollah.

The Frenchman was killed and three others wounded when their unit was ambushed on Saturday as it headed to a U.N. Interim Force in Lebanon (UNIFIL) outpost cut off from the fighting between Hezbollah and Israel.

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