In a televised speech, Nasrallah said the new focus would be on targeting Israeli drones that enter Lebanon's airspace, and this would be handled by fighters in the field.

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Hezbollah and the IDF exchanged cross-border fire on Sunday after a drone attack last week in a Hezbollah-controlled Beirut suburb. Hezbollah blamed that incident on Israel, raising fears of a wider regional conflict.

In his speech, Nasrallah said that Sunday's missiles sent Israel "a clear message that if you attack, then all your border, your forces and your settlements at the border and [deep inside]" will be at risk.

His comments struck a defiant tone, although perceptions in the region are that the longtime enemies privately want to avoid all-out war at a time of soaring regional tensions.

During Sunday's flare-up, Israel reportedly faked soldier injuries to dampen any inclination of Hezbollah to escalate hostilities.

Israeli media photographed an army helicopter performing what appeared to be the evacuation of two wounded soldiers to hospital after Hezbollah launched anti-tank missiles at an army base and vehicles. Israel said there were no casualties.

But a person briefed on the evacuation, and who spoke to Reuters on condition of anonymity, said the soldiers were, in fact, unharmed and bandaged with fake blood in what he called "a psy-ops stunt."

Hezbollah said it had destroyed an IDF vehicle and broadcast what it said was footage of two missiles hitting a moving vehicle.

Nasrallah said Sunday's incident had marked the first such Hezbollah operation in a long time targeting Israel in positions across the border, not in the Israeli-occupied Shebaa farms.

"This is no longer a red line," the Hezbollah chief said. "I tell the Israelis, we no longer have red lines because you changed the rules of engagement."

In a video statement in Twitter on Monday, Prime Minister Benjamin Netanyahu held out the prospect of future military action to prevent Hezbollah getting missiles that could be fired with increased accuracy at targets in Israel.

"We will continue to do whatever is necessary to defend Israel at sea, on land, and in the air. We will continue to act against the threat of the precision-guided rockets," he said.

Foreign Minister Yisrael Katz said he had asked Germany to tell Lebanon that if it does not stem Hezbollah's activity against Israel, "Lebanon in its entirety will be struck and badly damaged."

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In a short video, Netanyahu warned Hezbollah leader Sheikh Hassan Nasrallah that Israel had "operated with determination and responsibility. We protected the safety of our citizens and the lives of our soldiers. The man in the bunker in Beirut knows exactly why he's in a bunker."

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"We will continue to do what we need to do to protect Israel's security – at sea, on land, and in the air, and we will also continue to take action against the threat of precision-guided missiles," Netanyahu added.

Nasrallah himself was expected to speak about Sunday's events in an address Monday evening. Earlier Monday, Lebanese media outlets reported that Hezbollah was claiming it had footage that disproved Israel's reports that no Israeli soldiers or civilians had been wounded in the missile attack.

The Hezbollah-affiliated Al-Manar television station reported that a Hezbollah official had informed them that the footage would be made public "at the appropriate time."

Reports in Israel said that as part of Sunday's clash on the border, the IDF had staged an evacuation to make Hezbollah think that soldiers had been wounded. On Monday, an Israeli security official said that deceptive tactics were part of warfare, and that it was impossible for Israel to keep reports of wounded secret in events when they occur.

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