Israel and Hezbollah in major missile exchange as escalation fears grow

Hezbollah launched hundreds of rockets and drones at Israel early on Sunday, as Israel's military said it struck Lebanon with around 100 jets to thwart a larger attack, in one of the biggest clashes in more than 10 months of border warfare.

Missiles were visible curling up through the dawn sky, dark vapour trails behind them, as an air raid siren sounded in Israel and a distant blast lit the horizon, while smoke rose over houses in Khiam in southern Lebanon.

On Sunday evening, sirens sounded in Rishon Letsiyon, central Israel, the Israeli Defense Forces (IDF) said, and added that one projectile had been identified crossing from the southern Gaza Strip and falling in an open area. The armed wing of Hamas said it had fired an "M90" rocket at Tel Aviv.

Any major spillover in the fighting, which began in parallel with the war in Gaza, risks morphing into a regional conflagration drawing in Hezbollah's backer Iran and Israel's main ally the United States.

With three deaths confirmed in Lebanon and one in Israel, both sides indicated they were happy to avoid further escalation for now, but warned that there could be more strikes to come.

Hezbollah leader Sayyed Hassan Nasrallah said the Iranian-backed group's barrage, a reprisal for the assassination of senior commander Fuad Shukr last month, had been completed "as planned".

However, the group would assess the impact of its strikes and "if the result is not enough, then we retain the right to respond another time", he said.

Israel's foreign minister said the country did not seek a full-scale war, but Prime Minister Benjamin Netanyahu warned: "This is not the end of the story."

Earlier, Netanyahu had said: "We are determined to do everything we can to defend our country ... whoever harms us - we harm him".

The two sides have exchanged messages that neither wants to escalate further, with the main gist being that the exchange was "done", two diplomats told Reuters.

Expectations of an escalation had risen since a missile strike in the Israeli-occupied Golan Heights last month killed 12 youths and the Israeli military assassinated Shukr in Beirut in response.

Hezbollah had delayed its retaliation to give time for ceasefire talks, and had calibrated its attack to avoid triggering a full-scale war, a Hezbollah official said.

US Defense Secretary Lloyd Austin ordered the presence of two aircraft carrier strike groups in the Middle East, bolstering the US military presence. Earlier, top US General C.Q. Brown arrived in Israel for talks with military leaders.

Meanwhile in Gaza, the Israeli offensive continued, with air strikes killing at least five Palestinians in Gaza City early on Monday, according to the official Palestinian news agency Wafa.

There was no agreement in the Gaza ceasefire talks that took place in Cairo, with neither Hamas nor Israel agreeing to several compromises presented by mediators, although a senior US official, described the talks as "constructive" and said the process would continue in the coming days.