Update: Nick Blanford of the Times of London reports on the mood in Lebanon:
[T]he capture of two Israeli soldiers fits perfectly with Hezbollah’s ideological goals but on a practical level, the group is also taking an enormous risk. Hezbollah is under an awful lot of domestic pressure from Lebanese who support its political movement but are unhappy that it remains an armed organisation. Today’s violence has invited a huge response from Israel.
That said, I’ve spent the morning driving through Shia villages in southern Lebanon where there has been a feeling of happiness and celebration. Children are flying yellow Hezbollah flags and cheering supporters have set up impromptu roadside stops to hand out sweets, a traditional gesture of celebration.
Update: The IDF says it’s hit 30 targets in Lebanon so far this morning. The Lebanese prime minister demands that Kofi Annan stop the Zionist aggression.