The Israeli military has vowed to press ahead with its military campaign in Lebanon and said it would step up operations against Hezbollah.

"The (Iranian) regime is attempting to establish a new equation through direct attacks on Israeli territory in response to IDF operations in Dahieh," military spokesman Brigadier General Effie Defrin said Sunday, in a televised statement.

Iran, Hezbollah, and others have repeatedly dragged both Israel and Lebanon into "pointless and destructive conflicts" and "Hezbollah has a simple choice: it can continue fighting a pointless war, or it can finally allow the return of the displaced and the reconstruction of Lebanon," a U.S. official said on Sunday.

In remark to U.S. news portal Axios, the official claimed "the terms on the table are fair, have the consent of both sovereign governments, and provide a clear path to end the fighting."

The Israeli military said Sunday it uncovered a sprawling tunnel network beneath the Beaufort castle in southern Lebanon, saying it was built to give Hezbollah a fortified strike hub just kilometers from Israeli territory.

Israeli soldiers recaptured the crusader-era castle recently, giving the military a strategic toehold it once occupied for nearly two decades.

Iran threatened to retaliate against the United States and Israel for fresh strikes in Beirut's southern suburbs on Sunday, further dampening hopes for a lasting peace as the Middle East war reached its 100th day.

U.S. President Donald Trump called for "more surgical" strikes against Hezbollah in Lebanon and said he is not demanding the conflict be included in a peace deal with Iran, in an interview broadcast Sunday.

"I'd like to see a more surgical attack on Hezbollah. I think it should be more surgical," Trump told NBC's "Meet the Press," according to a transcript of the interview recorded Friday.

Israel's military struck alleged Hezbollah command centers in Beirut's southern suburbs in response to rocket fire on northern Israel, Prime Minister Benjamin Netanyahu's office said Sunday.

"In accordance with the directives of Prime Minister Netanyahu and Defense Minister Katz, the Israel Defense Forces have just struck a militant command center in Beirut's Dahiyeh district, in response to Hezbollah's fire towards Israeli territory," his office said.

Israel's military said Sunday that it had intercepted two projectiles launched from Lebanon into Israeli territory, despite a new ceasefire agreement announced this week aimed at ending hostilities between Israel and Hezbollah.

An Israeli strike on southern Lebanon killed two women and wounded 22 people on Saturday, Lebanon's health ministry said, despite a ceasefire in the Israel-Hezbollah war.

The Israeli army announced on Saturday the deaths of two soldiers who had been fighting in southern Lebanon, where Israel is pursuing a campaign against Hezbollah.

Israel's military on Saturday said it had struck around 150 Hezbollah targets in southern Lebanon over the past two days.