- Hezbollah rejects talks -

Hezbollah leader Naim Qassem rejected Lebanon's planned direct talks with Israel, calling them a "grave sin" that will destabilise Lebanon.

"We categorically reject direct negotiations with Israel, and those in power should know that their actions will not benefit Lebanon or themselves," Qassem said in a statement, calling on authorities to "back down from their grave sin that is putting Lebanon in a spiral of instability".

- Iran blames US -

Iran's foreign minister blamed Washington for the failure of talks after landing in Russia as part of a whirlwind diplomatic tour, with direct negotiations between the warring parties seemingly at an impasse.

"The US approaches caused the previous round of negotiations, despite progress, to fail to reach its goals because of the excessive demands," Abbas Araghchi said.

He also said "safe passage through the Strait of Hormuz is an important global issue".

- Oil prices rise -

Oil prices rose more than two percent Monday while stocks were mixed with the United States and Iran no closer to ending their eight-week-old war.

- Israeli soldier killed -

The Israeli army said one of its troops was killed "during combat" in south Lebanon, where a ceasefire has been in place since mid-April.

Israel and Iran-backed Hezbollah have accused each other of breaching the truce.

- ECB seen holding rates -

The European Central Bank is expected to hold interest rates steady again this week as it waits to see if the inflation spike triggered by the Middle East war will prove temporary or begin to weigh on growth.

burs/ach/rmb