According to the Guardian at least 50 Lebanese were killed in the assault, including 17 members of two families.
What has been called "wide strikes by Hezbollah" by NY Times has killed a woman in Israel.
No one was injured by two rockets that fell on Haifa, but they had an important psychological impact because Hizbullah has not been able to hit targets so deep into Israel before, nor such a large city.
The Israel-Lebanon crisis, coupled with anxiety over the mounting confrontation over Iran's nuclear ambitions, drove the price of crude oil to a record of almost $77 a barrel yesterday.
The EU said the sea and air blockade was unjustified and it deplored the "disproportionate" use of force and the loss of civilian life.
The UN secretary general, Kofi Annan, said he would dispatch a three-person team to the region to try to defuse the crisis.
GW Bush said that “Israel has the right to defend herself,” but also warned Israel "not to weaken the government in Lebanon".
(Sources: Guardian Unlimited italics NYTimes)
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