Israel, Hezbollah Appear To Pull Back After Missile Exchange.

Israel and Hezbollah, which has been designated a terrorist organization by the United States, engaged in a massive exchange of missile fire on August 25, but signaled they were not looking to escalate the conflict amid fears of all-out war in the region.

Tensions also remained high near the Gaza Strip after Hamas – an Iran-backed group also designated a terrorist organization by the United States and EU – apparently fired an "M90" rocket toward Tel Aviv late on August 25, although Israeli officials said it fell harmlessly into an empty field.

"Following the siren that sounded in Rishon LeTsiyon, one projectile was identified crossing from the southern Gaza Strip and falling in an open area in the area of Rishon LeTsiyon," the Israeli military said.

In one of the biggest clashes to rock the Middle East since war broke out in the Gaza Strip last October, Israel said it launched preemptive air strikes on targets of Iran-backed Hezbollah in southern Lebanon after Israeli intelligence detected that Hezbollah was planning to attack in the morning.

Hezbollah leader Hassan Nasrallah said in a speech later in the day that the attacks, which did not include using precision or strategic missiles, targeted "the Glilot base -- the main Israeli military intelligence base," near Tel Aviv, about 100 kilometers across the southern Lebanese border with Israel.

Nasrallah added in the televised speech that Israel began striking Hezbollah targets about 30 minutes before the group launched its attack, which was in response to the killing of one of its commanders.

Addressing Nasrallah and Iranian Supreme Leader Ayatollah Ali Khamenei, Israeli Prime Minister Benjamin Netanyahu said Israel's preemptive operation was "another step toward changing the situation in the north and returning our residents safely to their homes."

Thousands have been displaced in northern Israel as Hezbollah and Israel continue to trade cross-border attacks, which have intensified since war broke out in Gaza following an October 7 attack on Israel by Hamas that left some 1,200 people dead and scores more taken hostage.

The August 25 exchange of hundreds of missiles and drones sparked fears that the war may escalate and engulf the entire region, but a Hezbollah official said in a written statement to media outlets that the group had "worked" to ensure its attack would not trigger a full-scale war.

Reuters quoted its diplomatic sources as saying Israel and Hezbollah exchanged messages following the exchange saying neither wanted to escalate the conflict further.

Randa Slim, a senior fellow at the Washington, D.C.-based Middle East Institute, said that at least for now, the scope of the strikes from both sides may be enough to avoid a major war between Israel and Hezbollah "because both sides do not want it."

Earlier in the day, the Israel Defense Forces (IDF) said around 100 fighter jets "eliminated thousands of Hezbollah rocket-launcher barrels" that had been "aimed for immediate fire" toward northern and central Israel.

Hezbollah said the attack was "phase one" of its retaliation for the killing of its top commander Fuad Shukr in an Israeli strike on July 30 in Beirut. It insisted the operation had been "completed successfully."

Defense Minister Yoav Gallant declared a 48-hour state of emergency across Israel.

The IDF said Hezbollah had fired 150 projectiles, but Hezbollah claimed to have launched more than 320 Katyusha rockets.

Israeli fighter jets continued to strike Hezbollah rocket launchers after the group's attack to "remove threats."

Three people were killed in areas in southern Lebanon, according to the country's Health Ministry.

The extent of damage caused by Hezbollah's attack is unclear. Video footage on social media showed some rockets being intercepted and the aftermath of several rockets making impact.

The Office of the United Nations Special Coordinator for Lebanon called the developments "worrying" and called "on all to cease fire and refrain from further escalatory action."

"We will continue our contacts to strongly urge for de-escalation," it said.

Hezbollah and Israel have inched even closer to a full-blown war for weeks, especially after the death of 12 people in an apparent Hezbollah rocket attack in the Israeli-occupied Golan Heights on July 27.

Three days later, Israel struck a target in Beirut, killing Shukr, who was widely believed to be the second-most powerful person in Hezbollah's hierarchy behind Nasrallah.

Diplomats, meanwhile, huddled in Egypt on August 25 for high-level talks aimed at brokering a cease-fire in the 10-month-old war in Gaza between Israel and Hamas.

Later, a Hamas representative said the group's delegation left Cairo after meeting with Egyptian and Qatari mediators “who briefed them on the results of the latest negotiations" and said it had rejected Israel's latest terms for a cease-fire.

Israel's attack on Gaza has killed more than 40,000 people, according to the local Hamas-run health authorities.

With reporting by Reuters