Iran stopped communicating with mediators after Israel threatened to bomb Beirut as it fights the Lebanese militia Hezbollah. That's according to two semiofficial Iranian news agencies, but U.S. President Donald Trump is disputing the claim and says talks are continuing. The reports on Tuesday by the Fars and Tasnim news agencies come as Iran insists the fighting in Lebanon is part of the wider ceasefire talks with the United States over the war. Israel and the U.S. maintain the fighting in Lebanon is separate from the Iran war talks.

Protesters angry over Iran's ailing economy have conducted a sit-in at Tehran's Grand Bazaar. Security forces fired tear gas and dispersed demonstrators as the market shut down. The protests Tuesday come as Iran's rial currency fell to a record low. Activists say violence surrounding the protests has killed at least 36 people, with authorities detaining more than 1,200 others. Iran's Central Bank recently reduced subsidized exchange rates for dollars, likely leading to price hikes. Reformist President Masoud Pezeshkian warned the crisis might be moving beyond government control. The situation is likely to worsen as inflation and sanctions continue to impact the economy.