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The semi-official Tasnim news agency reported that Iran's negotiating team would halt talks and the exchange of messages through mediators, arguing that Israel's actions in Lebanon violate conditions linked to the US-Iran ceasefire.
Tasnim, which is affiliated with the Islamic Revolutionary Guard Corps (IRGC), said Tehran considers the situation in Lebanon a key component of the ceasefire framework and believes it has been breached "on all fronts".
The move comes after fresh exchanges of strikes between US and Iranian forces over the weekend despite a ceasefire reached earlier. Negotiations aimed at reaching a broader agreement have also been complicated by disagreements over Iran's nuclear and missile programmes.
According to the report, Iran has repeatedly insisted that Israeli military operations in both Gaza and Lebanon must end and that Israeli forces should withdraw from Lebanese territory as part of any future agreement with Washington.
Tasnim also reported that Tehran and allied groups within the so-called "Resistance Front" are considering measures including a complete closure of the Strait of Hormuz and increased activity in other strategic waterways to pressure Israel and its supporters.
The developments coincide with escalating tensions in Lebanon, where Israeli forces have expanded operations against Hezbollah. The UN Security Council is expected to hold an emergency meeting on the conflict following recent Israeli advances and strikes in Lebanese territory.
Meanwhile, US President Donald Trump sought to downplay concerns over the renewed hostilities, urging Americans to remain calm as tensions continue to rise across the region.