Israeli Prime Minister Benjamin Netanyahu on Sunday warned Yemen's Houthi militia of retaliation after the group claimed a missile attack on central Israel.

"This morning, the Houthis launched a surface-to-surface missile from Yemen into our territory. They should have known by now that we charge a heavy price for any attempt to harm us," Netanyahu said at the start of a cabinet meeting, according to a statement from his office.

"Those who need a reminder in this matter are invited to visit the port of Hodeidah," he added, referring to Yemen's Red Sea city that Israeli warplanes bombed in July after the Houthi armed group claimed a drone strike that killed a civilian in Tel Aviv.

The Houthis are among the Iran-backed groups in the Middle East that have been drawn into the conflict triggered by Hamas's October 7 attack on southern Israel.

On Israel's northern flank, Lebanon's Hezbollah has traded regular cross-border fire with Israeli forces in exchanges that threaten to spiral into all-out war.

On Sunday morning, about 40 projectiles were fired from Lebanon toward Israel's Upper Galilee region and the annexed Golan Heights, Israel's military said.

Tens of thousands of people have been displaced on both sides of the Israel-Lebanon border, and Netanyahu said on Sunday that the current situation was not sustainable.

"The existing situation will not continue. We will do everything necessary to return our residents safely to their homes," he said.

"We are in a multi-arena campaign against Iran's evil axis that strives to destroy us."

He described speaking with residents and authorities in the north, saying, "I hear the distress, I hear the cries.

"The status quo will not continue. This requires a change in the balance of power on our northern border."