Israel is prepared to deploy its full military capabilities to "reduce Beirut to rubble" within the next few weeks if a diplomatic solution with Hezbollah is not reached, according to a senior Israeli army commander.

Speaking just five miles from the Lebanese border, Lt. Col. Yarden emphasized Israel's determination to enable tens of thousands of displaced Israeli families to return to their homes.

"Kids have lost the entire year of school. It has been a tragedy. It is one of the prettiest areas in the country – both tourism and agriculture are dead," Yarden told reporters. "Whether through diplomacy or force, this situation must be resolved by September. Our children cannot afford to miss another year of school."

"We are fighting a defensive battle coupled with offensive strikes to destroy Hezbollah assets," said Yarden.

"We are not looking for war, but we are ready for it. If Hezbollah chooses war, we will know what to do. If it chooses an agreement, we will respond accordingly."