Hezbollah admits Israel dealt a severe blow with exploding pagers and walkie talkies, but neither side seems to heed U.S. calls to avoid a wider war.

Israel said it pounded Lebanon's Hezbollah, just hours after the group's leader vowed retribution for deadly explosions that targeted its communication devices, killing 37 people and wounding thousands.

Israel carried out extensive air strikes across southern Lebanon on Thursday, stepping up hostilities after it declared a “new phase” of war against militant group Hezbollah in the area.