Israel pummels south Lebanon with bombs and shells, while Israel's inner cabinet decides to continue the current limited incursions into Lebanon rather than launching a bigger ground offensive against Hezbollah.

Israeli warplanes destroy radio masts north of Beirut and attack trucks carrying medical and food supplies, security sources say. Warplanes blast targets in the mainly Shi'ite Muslim south, and artillery batteries open up from inside Israel.

Al-Qaida's deputy leader Ayman al Zawahri warns his group will not stand by and watch Israel bombard Lebanon and the Palestinians, calling on Muslims in a video to fight attacks on their countries.

A diplomatic divide over how to end the fighting in Lebanon widens with France pressing for an early UN ceasefire resolution while the United States aims new threats at Iran and Syria.

Diplomacy moves to Malaysia with Iran's foreign minister due to visit as the country hosts security meeting attended by US Secretary of State Condoleezza Rice.

Several Hezbollah rockets land in northern Israel but cause no casualties, Israeli emergency services say.

Israel's army believes it has killed dozens of Hezbollah guerrillas during fighting in south Lebanon over the past day, Israeli military source says.

A total of 434 Lebanese and 51 Israelis have been killed in conflict.