Israel is ready for an offensive along the northern border with Lebanon and is nearing a decision, the chief of staff said on Tuesday.
The conflict between Hezbollah and Israel, which has been fought in parallel to the Gaza war, has intensified in recent days.
Israeli Military Chief of General Staff Herzi Halevi said the army was ready to move to an offensive in the north.
"We are prepared after a very good process of training up to the level of a General Staff exercise to move to an offensive in the north," he said in a recorded statement. "We are approaching a decision point."
Hezbollah deputy leader Sheikh Naim Qassem told broadcaster Al Jazeera that the group's decision was not to widen the war but that it would fight one if it was imposed on it. Qassem said the Lebanon front would not stop until the Gaza war stops, Al Jazeera quoted him as saying.
US State Department spokesperson Matthew Miller said Washington does "not support a full war with Hezbollah" but Israel had the right to defend itself from Hezbollah attacks.
"We've heard Israeli leaders say the solution that they prefer is a diplomatic solution. And obviously that is the solution that we prefer too and that we're trying to pursue," he said.
The European Union said it was "increasingly concerned" about rising tensions and forced displacement of civilians on both sides of the Israeli-Lebanese border and called for restraint from all sides.
"Nobody stands to win from a broader regional conflict," the EU said in a statement. "A de-escalation of the situation would significantly contribute to the settlement of the broader conflict in the Middle East."
Israeli government spokesperson David Mencer said the fighting in the area was "not a sustainable reality", adding that Israel was committed to ensuring the return home of tens of thousands of Israelis evacuated from the north.
"It is up to Hezbollah to decide if this can be accomplished by diplomatic means or by force," he said. "We are defending this country and no one should be surprised by our response."
Amos Hochstein, a senior adviser to US President Joe Biden at the heart of diplomatic efforts seeking de-escalation, said last week a land border agreement between Israel and Lebanon implemented in phases could dampen the conflict.
Earlier on Tuesday, Israeli far-right ministers Bezalel Smotrich and Itamar Ben-Gvir urged more military action.
"There cannot be peace in Lebanon while our land is hit and people here are evacuated," Ben-Gvir said following a tour in the northern city of Kiryat Shmona in a video statement shared on X. "They're setting fires here, we must burn all of Hezbollah's strongholds, destroy them. War!"
Ben-Gvir and Smotrich are members of Israel's security cabinet but not of the war cabinet.