"Since this morning Israeli naval vessels have enforced a full naval closure on Lebanon, because Lebanon's ports are used to transfer both terrorists and weapons to the terror organisations operating in Lebanon," an Israeli military spokesman said.
The new development came as Israeli fighter bombers carried out their biggest offensive in Lebanon since Israel's 1982 invasion as air-strikes blasted the country’s only international airport and Hezbollah television station.
A shell hit the eastern runway shortly after 6am local time and was followed by others, airport employees reported. An inspection, by officials, discovered that the three runways had a total of one large crater and seven smaller holes in them.
The Israeli attacks in south Lebanon have killed at least 26 civilians and wounded dozens more, Lebanese security officials said.
A family of 10 and another family of seven were killed in their homes in the village of Dweir near Nabatiyeh, the officials said.
In northern Israel, thousands of civilians spent last night in underground shelters as Hezbollah fired rockets across the border. A 40-year-old Israeli woman was killed and five people were wounded in the rocket attacks, the Israeli army reported.
Emergency meeting
An emergency meeting by Israel's Cabinet decided to respond forcefully to Hezbollah’s raid which captured the two Israeli soldiers and their demand for a prisoner exchange.
Israeli Agriculture Minister Shalom Simchon, told Israel Radio, "The government wants to change the rules of the game in Lebanon and make the Lebanese government understand that it is responsible for what happens in Lebanon."
But the Lebanese government said yesterday that it did not know of the Hezbollah operation, did not condone it and bore no responsibility for it. The Lebanese cabinet has urged the UN Security Council to intervene.
Russia condemns Israel
Russia has slammed Israel's "disproportionate use of force" against Lebanon and the Palestinian territory, saying that civilians were being made to suffer.
The Mideast "quartet" which includes the European Union, Russia, the United Nations and the United States, are consulting over the conflict, with a Russian official, Sergei Yakovlev, telling local media, the members are "holding active consultations in order to work out recommendations for resolving the situation."
"The main thing is not to allow the conflict to develop into all-out war between Lebanon and Israel," he added.
Embassy closed
The Australian Department of Foreign Affairs says its embassy in the Lebanese capital Beirut has closed and staff have been sent home.
The embassy in Israel, in Tel Aviv, would not comment on the situation and Australia's ambassador to Israel, Tim George, was not available.