New Delhi, June 7 -- Hezbollah on Thursday rejected the latest ceasefire agreement between Israel and the Lebanese government, and the militant group demanded a complete Israeli withdrawal from Lebanon as more fighting there hampered efforts to end the Iran war.

The Hezbollah announcement came as Israeli strikes killed at least four people, according to local authorities, and a U.N. peacekeeper was killed in the crossfire. An Israeli soldier was also killed in combat in southern Lebanon.

Hezbollah leader Naim Kassem, in a written statement read on TV, called the negotiations "absurd, humiliating and insulting." He said the agreement's demand that Hezbollah fighters leave southern Lebanon under fire would mean "surrender, defeat and achi...