At least two Israeli soldiers were killed in clashes with Hizbullah fighters along the border on Wednesday afternoon.
Meanwhile, at least 54 Lebanese were killed, many trapped under the rubble of flattened homes, as Israeli jets and gunboats bombed towns and villages in Lebanon Wednesday and tens of thousands fled.
Ground troops headed back across the border to strike Hizbullah outposts as another volley of rockets fell on northern Israel on the eighth day of an offensive that Israel said would have "no time limit."
Streams of Lebanese were fleeing their homes to find safe havens and thousands of foreigners, mainly Westerners, were being evacuated by sea to Cyprus.
Israeli helicopters also fired rockets on two trucks parked in an empty lot in Beirut's Ashrafiyeh residential neighborhood. It was the first direct strike at the heart of the capital, news agencies reported.
Warplanes also raided two bases for the Popular Front for the Liberation of Palestine-General Command in Sultan Yaacoub near the Syrian border.
More than 300 people have been killed in Lebanon since Israel unleashed a massive military assault it says is aimed at destroying Hizbullah after the capture of two soldiers eight days ago.
Hizbullah on Wednesday fired more rockets on Haifa and the Western Galilee with no report of casualties. Hizbullah official Mahmoud Qomati told AFP the group has enough rockets to continue hitting Israel "for months" whatever Israeli warplanes do to its supply lines.
