Israel ramps up strikes on Beirut as its leadership prepares to vote on ceasefire with Hezbollah

BEIRUT (AP) — Israeli warplanes struck central Beirut and the city's southern suburbs on Tuesday, raising smoke over the Lebanese capital ahead of a planned vote by Israel's leadership on whether to accept a U.S.-brokered ceasefire aimed at ending more than a year of fighting with Hezbollah militants.

The Israeli military issued a flurry of evacuation warnings — a sign it was aiming to inflict punishment on Hezbollah down to the final moments before any ceasefire takes hold. Israeli ground troops also reached parts of Lebanon’s Litani River for the first time in the conflict — a focal point of the emerging deal.

The evacuation warnings covered many areas, including parts of Beirut that have not been targeted throughout the war. The warnings, coupled with fear that Israel was ratcheting up attacks in the final hours before a ceasefire is reached, sparked panic in Lebanon and sent residents fleeing in their cars to safer areas.

Near Beirut’s commercial Hamra district, where many displaced by the war have been staying, families were seen running away toward the Mediterranean sea’s beaches carrying their belongings. Traffic was completely gridlocked as people tried to get away and Israeli drones buzzed loudly overhead.

Hezbollah, meanwhile, kept up its rocket fire, triggering air raid sirens across northern Israel.

A ceasefire was still not a sure thing, but Israel’s security Cabinet, meeting Tuesday afternoon, was expected to approve the proposal. Lebanese officials have said Hezbollah also supports the deal. If approved by all sides, the deal would be a major step toward ending the Israel-Hezbollah war that has inflamed tensions across the region and raised fears of an even wider conflict between Israel and Hezbollah's patron, Iran.

The deal calls for a two-month initial halt in fighting and would require Hezbollah to end its armed presence in a broad swath of southern Lebanon, while Israeli troops would return to their side of the border. Thousands of Lebanese troopsand U.N. peacekeepers would deploy in the south, and an international panel headed by the United States would monitor all sides’ compliance.

But implementation remains a major question mark. Israel has demanded the right to act should Hezbollah violate its obligations. Lebanese officials have rejected writing that into the proposal. Israel's Defense Minister Israel Katz insisted on Tuesday that the military would strike Hezbollah if the U.N. peacekeeping force, known as UNIFIL, doesn’t provide “effective enforcement” of the deal.

“If you don’t act, we will act, and with great force,” Katz said, speaking with U.N. special envoy Jeanine Hennis-Plasschaert.

The European Union’s top diplomat, Josep Borrell, said Tuesday that Israel’s security concerns had been addressed in the deal also brokered by France.

“There is not an excuse for not implementing a ceasefire. Otherwise, Lebanon will fall apart,” Borrell told reporters in Italy on the sidelines of a Group of Seven meeting. He said France would participate on the ceasefire implementation committee at Lebanon's request.

Even as Israeli, U.S, Lebanese and international officials have expressed growing optimism over a ceasefire, Israel has continued its campaign in Lebanon, which it says aims to cripple Hezbollah’s military capabilities.

An Israeli strike on Tuesday leveled a residential building in the central Beirut district of Basta — the second time in recent days warplanes have hit the crowded area near the city’s downtown. At least three people were killed and 26 wounded, according to Lebanon's Health Ministry.

It was not immediately clear if anyone in particular was targeted, though Israel says its airstrikes target Hezbollah officials and assets.

Earlier, Israeli jets struck at least six buildings in Beirut’s southern suburbs. One strike slammed near the country’s only airport, sending plumes of smoke into the sky. The airport has continued to function despite its location on the Mediterranean coast next to the densely populated suburbs where many of Hezbollah’s operations are based.

Israeli military spokesman Avichay Adraee issued evacuation warnings for 20 buildings in the suburbs, as well as a warning for the southern town of Naqoura where UNIFIL is headquartered.

UNIFIL spokesperson Andrea Tenenti told The Associated Press that peacekeepers will not evacuate.

Other strikes hit in the southern city of Tyre, where the Israeli military said it killed a local Hezbollah commander.

The Israeli military also said its ground troops clashed with Hezbollah forces and destroyed rocket launchers in the Slouqi area on the eastern end of the Litani River, a few kilometers (miles) from the Israeli border.

Under the ceasefire deal, Hezbollah would be required to move its forces north of the Litani, which in some places is about 30 kilometers (20 miles) north of the border.

A ceasefire between Israel and Hezbollah, the strongest Iranian-backed force in the region, would likely significantly calm regional tensions that have led to fears of a direct, all-out war between Israel and Iran. It’s not clear how the ceasefire will affect the Israel-Hamas war in Gaza. Hezbollah had long insisted that it would not agree to a ceasefire until the war in Gaza ends, but it dropped that condition.

Hezbollah began firing into northern Israel, saying it was showing support for the Palestinians, a day after Hamas carried out its Oct. 7, 2023, attack on southern Israel, triggering the Gaza war. Israel returned fire on Hezbollah, and the two sides have been exchanging barrages ever since.

Israel escalated its campaign of bombardment in mid-September and later sent troops into Lebanon, vowing to put an end to Hezbollah fire so tens of thousands of evacuated Israelis could return to their homes.

More than 3,760 people have been killed by Israeli fire in Lebanon the past 13 months, many of them civilians, according to Lebanese health officials. The bombardment has driven 1.2 million people from their homes. Israel says it has killed more than 2,000 Hezbollah members.

Hezbollah fire has forced some 50,000 Israelis to evacuate in the country’s north, and its rockets have reached as far south in Israel as Tel Aviv. At least 75 people have been killed, more than half of them civilians. More than 50 Israeli soldiers have died in the ground offensive in Lebanon.

After previous hopes for a ceasefire were dashed, U.S. officials cautioned that negotiations were not yet complete and noted there could be last-minute hitches that delay or destroy an agreement.

“Nothing is done until everything is done,” White House national security spokesman John Kirby said.

While the ceasefire proposal is expected to be approved if Netanyahu brings it to a vote in his security Cabinet, one hard-line member, National Security Minister Itamar Ben-Gvir, said he would oppose it. He said on X that a deal with Lebanon would be a “big mistake” and a “missed historic opportunity to eradicate Hezbollah.”

Find more of AP’s war coverage at https://apnews.com/hub/israel-hamas-war

Rescuers search for victims at the site of an Israeli airstrike that targeted a building in Beirut, Lebanon, Tuesday, Nov. 26, 2024. (AP Photo/Hassan Ammar)

Smoke rises following an Israeli airstrike on Dahiyeh, in Beirut, Lebanon, Tuesday, Nov. 26, 2024. (AP Photo/Bilal Hussein)

Rescuers search for victims at the site of an Israeli airstrike that targeted a building in Beirut, Lebanon, Tuesday, Nov. 26, 2024. (AP Photo/Hassan Ammar)

Journalists watch the smoke rising between buildings hit in Israeli airstrikes near the Palestinian refugee camp of Rashidiyeh, as it seen from Tyre city, south Lebanon, Tuesday, Nov. 26, 2024. (AP Photo/Hussein Malla)

Rescuers and residents search for victims at the site of an Israeli airstrike that targeted a building in Beirut, Lebanon, Tuesday, Nov. 26, 2024. (AP Photo/Hassan Ammar)

A police bomb squad officer inspects the site where a rocket fired from Lebanon landed in a backyard in Kiryat Shmona, northern Israel, Tuesday Nov. 26, 2024. (AP Photo/Leo Correa)

Smoke rises following an Israeli airstrike on Dahiyeh, in Beirut, Lebanon, Tuesday, Nov. 26, 2024. (AP Photo/Bilal Hussein)

A police bomb squad officer inspects the site where a rocket fired from Lebanon landed in a backyard in Kiryat Shmona, northern Israel, Tuesday Nov. 26, 2024. (AP Photo/Leo Correa)

An Israeli soldier inspects the site where a rocket fired from Lebanon landed in a backyard in Kiryat Shmona, northern Israel, Tuesday Nov. 26, 2024. (AP Photo/Leo Correa)

Smoke rises between buildings hit in Israeli airstrikes in Hosh neighbourhood, in Tyre, south Lebanon, Tuesday, Nov. 26, 2024. (AP Photo/Hussein Malla)

Smoke rises between buildings hit in Israeli airstrikes in Hosh neighbourhood, in Tyre, south Lebanon, Tuesday, Nov. 26, 2024. (AP Photo/Hussein Malla)

Police bomb squad officers collect the pieces of a rocket fired from Lebanon that landed in a backyard in Kiryat Shmona, northern Israel, Tuesday Nov. 26, 2024. (AP Photo/Leo Correa)

Israeli soldiers inspect the site where a rocket fired from Lebanon landed in a backyard in Kiryat Shmona, northern Israel, Tuesday Nov. 26, 2024. (AP Photo/Leo Correa)

Israeli security officers and army soldiers inspect the site where a rocket fired from Lebanon landed in a backyard in Kiryat Shmona, northern Israel, Tuesday Nov. 26, 2024. (AP Photo/Leo Correa)

NEW YORK (AP) — U.S. stocks are hanging near their records on Tuesday as Wall Street takes Donald Trump’slatest talk about tariffs in stride, even if they could roil the global economy were they to take effect.

The S&P 500 rose 0.3% in morning trading and was on track to squeak past its all-time high set a couple weeks ago. The Dow Jones Industrial Average lost 270 points, or 0.6%, from its own record set the day before, while the Nasdaq composite was 0.6% higher, as of 10:45 a.m. Eastern time.

Stock markets abroad were down, but mostly only modestly, after President-elect Trump said he plans to impose sweeping new tariffs on Mexico, Canada and China as soon as he takes office. Stock indexes were down 0.1% in Shanghai and nearly flat in Hong Kong, while Canada's main index was down 0.4%.

Trump has often praised the use of tariffs, but investors are weighing whether his latest threat will actually become policy or is just an opening point for negotiations. For now, the market seems to be taking it more as the latter.

Unless the United States can prepare alternatives for the autos, energy products and other goods that come from Mexico, Canada and China, such tariffs would raise the price of imported items all at once and make households poorer, according to Carl Weinberg and Rubeela Farooqi, economists at High Frequency Economics. They would also hurt profit margins for U.S. companies, while raising the threat of retaliatory tariffs by other countries.

General Motors sank 7.3%, and Ford Motor fell 1.8%. Constellation Brands, which sells Modelo and other Mexican beers in the United States, dropped 4.4%.

Beyond the pain such tariffs would cause U.S. households and businesses, they could also push the Federal Reserve to slow or even halt its cuts to interest rates. The Fed had just begun cutting its main interest rate from a two-decade high a couple months ago to offer support to the job market. While lower interest rates can boost the overall economy and prices for investments, they can also offer more fuel for inflation.

Unlike tariffs in Trump's first term, his proposal from Monday night would affect products across the board.

Trump’s tariff talk came almost immediately after U.S. stocks rose Monday amid excitement about his pick for Treasury secretary, Scott Bessent. The hope was the hedge-fund manager could steer Trump away from policies that balloon the U.S. government deficit, which is how much more it spends than it takes in through taxes and other revenue.

The talk about tariffs overshadowed another set of mixed profit reports from U.S. retailers that answered few questions about how much more shoppers can keep spending. They’ll need to stay resilient after helping the economy avoid a recession, despite the high interest rates instituted by the Fed to get inflation under control.

Kohl’s tumbled 20.4% after its results for the latest quarter fell short of analysts’ expectations. CEO Tom Kingsbury said sales remain soft for apparel and footwear, which helped drag its revenue lower. Kingsbury said a day earlier that he plans to step down as CEO in January. Ashley Buchanan, CEO of Michaels and a retail veteran, will replace him.

Best Buy fell 8% after likewise falling short of analysts’ expectations. Dick’s Sporting Goods topped forecasts for the latest quarter thanks to a strong back-to-school season, but its stock lost an early gain to fall 2.4%.

A report on Tuesday from the Conference Board said confidence among U.S. consumers improved in November, but not by as much as economists expected.

J.M. Smucker jumped 7.6% for one of the biggest gains in the S&P 500 after topping analysts' expectations for the latest quarter. CEO Mark Smucker credited strength for its Uncrustables, Meow Mix, Café Bustelo and Jif brands.

Big Tech stocks also helped prop up U.S. indexes. Gains of 2.7% for Amazon and 1.9% for Microsoft were two of the strongest forces lifting the S&P 500.

In the bond market, Treasury yields rose following their big drop from a day before driven by relief following Trump’s pick for Treasury secretary.

The yield on the 10-year Treasury climbed to 4.31% from 4.28% late Monday, but it’s still well below the 4.41% level where it ended last week.

In the crypto market, bitcoin continued to pull back after topping $99,000 for the first time late last week. It's since dipped back toward $93,400, according to CoinDesk.

It’s a sharp turnaround from the bonanza that had earlier taken over the crypto market following Trump’s election. That boom had also appeared to have spilled over into some corners of the stock market. Strategists at Barclays Capital pointed to stocks of unprofitable companies, along with other areas that can be caught up in bursts of optimism by smaller-pocketed “retail” investors.

AP Business Writer Elaine Kurtenbach contributed.

People walk past the New York Stock Exchange on Tuesday, Nov. 26 2024. (AP Photo/Peter Morgan)

FILE - People work on the New York Stock Exchange trading floor in New York on November 21, 2024. (AP Photo/Ted Shaffrey, File)

People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

People walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of the Tokyo Stock Exchange building at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person walks in front of an electronic stock board showing part of Japan's Nikkei index at a securities firm Tuesday, Nov. 26, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)