Iran said Monday it had demanded the release of its frozen assets and the end of a U.S. blockade of its ports, after President Donald Trump angrily rejected Tehran's terms for starting negotiations to halt the Middle East war.

The sharp exchange of messages raised the specter of a return to open conflict in the Gulf, sent oil prices soaring and dashed hopes that a deal could be quickly negotiated to reopen the Strait of Hormuz to commercial shipping.

Israel on Monday condemned the European Union's move to impose new sanctions on Israeli settlers over violence against Palestinians, asserting that Jews have the right to settle in the occupied West Bank.

"The European Union has chosen, in an arbitrary and political manner, to impose sanctions on Israeli citizens and entities because of their political views and without any basis," Foreign Minister Gideon Saar posted on X.

The public broadcasters for Spain, Ireland and Slovenia said Monday that they will not show the Eurovision Song Contest this week as they boycott the event over Israel's participation.

"For the next 10 days, instead of the Eurovision circus, the national television program will be colored by the thematic program series 'Voices of Palestine'," Slovenian broadcaster RTV said. Ireland's RTE will show a comedy and Spain will run its own musical special instead of this year's Eurovision from Vienna, which kicks off on Tuesday. Five countries are boycotting the contest.

The Lebanese army said that it has arrested an Iraqi national for impersonating an Iraqi security official in Lebanon, the second alleged high-level imposter caught in recent months.

A military source told AFP that the man had managed to network with Lebanese security and intelligence officials, telling them he worked at Iraq's Beirut embassy.

Israel's military said Monday that one of its soldiers had died in fighting near the border with Lebanon and three were wounded in a drone attack in the south, bringing its losses to 18 personnel since the war with Hezbollah began in early March.

Sergeant Major Alexander Glovanyov, 47, "fell during combat near the Israel-Lebanon border", the military said.

China said Monday it was ready to work with the United States in the pursuit of "more stability" globally, ahead of this week's meeting between leaders Xi Jinping and Donald Trump.

"Top-level diplomacy plays an irreplaceable strategic guiding role in China-U.S. relations," foreign ministry spokesman Guo Jiakun told a regular news briefing.

Iran's foreign ministry said Monday it had called for an end to the war across the region and the release of frozen assets abroad in its response to the latest U.S. proposal.

"We did not demand any concessions. The only thing we demanded was Iran's legitimate rights," said ministry spokesman Esmaeil Baqaei in a weekly press briefing.

Israel kept up strikes on south and east Lebanon on Monday despite a ceasefire, targeting Jmayjmeh, al-Qlayleh, Harees, Arnoun, Jarjou', Sojod, Toul, Yohmor Shqif, Kfartebnit, Kfardounine, Shoukine, Ebba, Kfarjoz, Zebdine, Zebqine, Yater, Nabatieh, Safad al-Battikh and Kfar Remman.

Israeli artillery meanwhile shelled the southern towns of Yohmor, Arnoun, Kfartebnit, Nabatieh, Mayfadoun, Majdalzoun, Jebshit, Ali Taher and Qalaway.

U.S. President Donald Trump said Sunday he has rejected Iran's response to a U.S. proposal for ending the Iran war, deeming it "totally unacceptable."

"I have just read the response from Iran's so-called 'Representatives.' I don't like it -- TOTALLY UNACCEPTABLE!" Trump posted on his Truth Social platform, without describing elements of Tehran's response.

U.S. President Donald Trump on Sunday accused Iran of "playing games" and laughing at America for decades, but said it soon would be made to stop -- without commenting directly on reports of Tehran's response to Washington's latest peace proposal.