Israel shelled south Lebanon Wednesday after Hezbollah fired rockets from the border area, the latest exchange on Israel's northern border as it battles Hamas militants in Gaza.

"The area around Dhayra is being bombarded by enemy artillery, while the area around Yarin is being hit with phosphorus shells," Lebanon's National News Agency said, earlier reporting "two rockets fired from Lebanese territory".

A fresh salvo of rockets was fired from south Lebanon towards Israel on Tuesday, prompting Israeli attacks on positions belonging to Hezbollah and retaliatory fire, in the third consecutive day of cross-border tensions.

The rocket launch, which was claimed by Hamas' armed wing, comes amid a raging war between Israel and the Hamas in and around the Gaza Strip.

In mosques, football stadiums and towns across the Arab world, pro-Palestinian sentiment has surged after a shock Hamas attack on Israel, sparking a groundswell of solidarity for the Palestinians.

From Ramallah to Beirut, Damascus, Baghdad and Cairo, people have distributed sweets, danced and chanted prayers in support of the "resistance" to Israel's long-standing occupation of Palestinian land.

Hezbollah will “certainly respond” to the Israeli shelling that killed three of its members in south Lebanon on Monday, Hezbollah sources told al-Joumhouria newspaper in remarks published Tuesday.

Sources close to the group meanwhile told the daily that Hezbollah is maintaining the highest level of preparedness for any development, while denying the reports about Hezbollah “messages” sent to Israel through Arab sides.

British Ambassador to Lebanon Hamish Cowell on Tuesday met with caretaker Foreign Minister Abdallah Bou Habib and discussed with him the developments in Gaza and Lebanon.

The National News Agency said Cowell stressed the importance of keeping Lebanon out of the ongoing conflict between Israel and the Palestinians.

Caretaker Prime Minister Najib Mikati has scheduled a caretaker Cabinet session for this Thursday.

A statement issued by Cabinet’s secretary-general said the session will tackle “the current developments at all levels,” in reference to the Israel-Gaza war and the latest military developments in south Lebanon.

The British Embassy in Beirut has announced updated Travel Advice for Lebanon.

The Foreign, Commonwealth and Development Office advised Tuesday against non-essential travel to Lebanon and against all travel to some areas in the south of the country.

Reports that a drone may have crossed into Israel from Lebanon or Syria turned out to be "false," the Israeli army said on Tuesday.

“There are reports of a suspected aerial violation over the Golan and the Upper Galilee and our aircraft are monitoring the area,” the army had said earlier.

Former Progressive Socialist party leader Walid Jumblat has urged Hezbollah to keep the situation in the South under control, after Palestinian militants tried to infiltrate into Israel from Lebanon.

Hezbollah has to control the situation in the south more than any time before especially against infiltration attempts, Jubmlat said, warning against a "Jewish-Islamic conflict."

Israeli forces shelled the southern Lebanese border towns of Blida and Mays al-Jabal at dawn Tuesday, Lebanon’s National News Agency said.

The agency said the Israeli army fired four artillery shells after suspecting the presence of a cross-border infiltration attempt.