Israel's government is meeting to discuss broadening its offensive in Lebanon, as Israeli jets launch new bombing raids across the country.
Israeli warplanes struck in the north, east and centre of Lebanon before dawn on Wednesday, hitting roads, bridges, fuel tankers and homes, police said.
Five children and their mother are believed to have died after an Israeli air strike hit a building in the town of Mashgara in the Bekaa Valley, Aljazeera's correspondent in Lebanon said.
The dead were family members of a Hezbollah politician who was seriously wounded in the attack.
Earlier, at least one person was killed and more than 15 wounded after Israeli bombed a Palestinian refugee camp in southern Lebanon.
Lebanese and Palestinian officials said an Israeli gunboat shelled the Ein el-Hilweh camp, but Israeli soldiers said the attack was an air strike.
Many of those injured were children, hospital sources said.
A total of five Israeli soldiers also died in clashes with Hezbollah fighters on Tuesday, while Hezbollah continued its barrage of rockets into northern Israel.
Casualty concerns
Ehud Olmert, the Israeli prime minister, convened his inner security cabinet on Wednesday morning to discuss a military push to the Litani river, 20km inside Lebanon, and possibly beyond.
Amir Peretz, the Israeli defence minister, and other top military officers favour the plan in order to inflict as much damage on Hezbollah as possible before any proposed ceasefire takes hold.
However, Israeli media reported that Olmert is concerned the move could result in hundreds of casualties.
Up to 1,000 Lebanese, mainly civilians, have died in the past four weeks since Israeli military operations began.
More than 100 Israelis have also been killed in fighting or rocket attacks by Hezbollah.
Israelis advance deeper
At least 10,000 Israeli troops are now just inside Lebanon where they have met fierce resistance from Hezbollah.
An Israeli security source said Israeli forces over-nighting in Taibeh, a Lebanese village 5 km (3 miles) from the border, have pushed west to the outskirts of the village of Qantara and north towards Burj al-Molouk and Qlaiah villages on Wednesday morning.
Hezbollah said its fighters confronted Israelis advancing on the outskirts of Qantara, 8 km (5 miles) from the border. The Shia militia claimed to have destroyed two tanks there, killing or wounding 10 soldiers.
The Israeli army said there had been clashes around Qantara but gave no details of casualties.
Hezbollah also said its troops had destroyed two tanks near Burj al-Molouk and inflicted casualties on Israeli forces at the village of Debel, 5 km (3 miles) from the border.
Israel named a new top commander for its military operations in Lebanon on Tuesday.
Israeli media linked the appointment of Major General Moshe Kaplinski to mounting public criticism of the army's handling of the battle against Hezbollah.
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