In Israel, the Prime Minister, Binyamin Netanyahu, has warned that his country's forces will strike targets inside Lebanon if Hezbollah guerillas fire rockets into Israel.

Mr Netanyahu acknowledged that the retaliation policy could lead to an escalation of violence, but said it was needed to deter Hezbollah attacks.

He was speaking after attacks by both sides last week in which seven Lebanese were killed and several Israelis were injured.

Mr Netanyahu also said there would be no unilateral withdrawal of Israeli troops from south Lebanon saying this would leave northern Israel unprotected.