Fear stalks northern Israel after strike kills Hamas deputy Arouri

Near Israel's tense northern border with Lebanon, residents fear the killing of the deputy leader of Palestinian militant group Hamas in Beirut could spark a war with their neighbor.

During nearly three months of fighting between Israel and Hamas in Gaza, the Israeli army has also been exchanging cross-border fire with Lebanon's Hezbollah, which is allied with Hamas.

While the violence had already dampened the mood in the coastal city of Nahariya, the anxiety level shot up with the death of Hamas number two Saleh al-Arouri in a strike in a Beirut suburb on Tuesday.

Lebanese security officials and Hamas blamed it on Israel, which has not directly commented on the killing.

"In the morning, we didn't know whether to send our children to school... fearing Hezbollah's response to what happened yesterday," said Lee Zorviv, who owns a clothing shop.

Hezbollah vowed Arouri's killing would not go unpunished and labelled it "a serious assault on Lebanon... and a dangerous development".

The last Israel-Hezbollah war, in 2006, killed more than 1,200 people in Lebanon, mostly civilians, and 160 in Israel, mostly soldiers.

United Nations peacekeepers who patrol the frontier warned on Wednesday that further escalation could have "devastating consequences".

"We continue to implore all parties cease their fire, and any interlocutors with influence to urge restraint," said UNIFIL deputy spokeswoman Kandice Ardiel.

Iran-backed Hezbollah is believed to have amassed a considerable weapons arsenal in recent decades, while its foe Israel has received military support from the United States.

Zorviv, in her 40s, said the school day was shortened and people were constantly checking their phones for updates.

"The situation's really bad, really sad," she said. "Morale is down."

- 'We're scared' -

The Gaza war broke out after Hamas launched an unprecedented attack against Israel on October 7 that reportedly claimed the lives of around 1,140 people.

Vowing to destroy Hamas, Israel has waged a relentless offensive that has reduced vast swathes of Gaza to rubble, claiming over 22,300 lives.

While residents in Nahariya worry about war with Lebanon, their finances have already taken a hit.

Shop sales have halved in recent weeks, Zorviv said, while some businesses have closed.

From the seafront, warships are visible beyond the fishermen and handful of swimmers who brave the winter water.

A soldier described the area as a "closed military zone".

From teenagers to the elderly, many spoke of fear gripping Nahariya.

In the city center, David, who declined to give his surname, predicted that more violence was inevitable.

"War will break out. Something will happen," said the unemployed 54-year-old. "Either Israel will react strongly to Hezbollah, or they will respond (to the killing)... it's only a matter of time."

Following Arouri's killing, the Israeli military said it was "in a very high state of readiness in all arenas".

"We are highly prepared for any scenario," army spokesman Daniel Hagari said without directly commenting on the Beirut strike.

People were seen in the city carrying automatic weapons, some in military uniform, others in civilian clothes.

"We're scared," said Zorviv. "We're in a state of war."