| BEIRUT, Lebanon (CNN) -- Hezbollah leader Sheik Hassan Nasrallah said his group is ready for "open war" with Israel on Friday, as attacks continued from both sides in the deepening crisis.
"We are ready for it -- war, war on every level," said Nasrallah, soon after Israel's military reportedly hit his home and destroyed Hezbollah's headquarters in southern Beirut.
Earlier Israeli rescue services said a large barrage of rockets smashed into northern Israel, on the third day of violence since Hezbollah militants killed three Israeli soldiers and captured two others in northern Israel.
The continued rocket attacks -- including one that authorities said killed a woman and her grandchild Friday -- prompted Israel's Cabinet to approve extended military operations in Lebanon, a spokesman for Israeli Prime Minister Ehud Olmert said.
Dozens of people in Lebanon have been killed since the violence began and more than 100 have been hurt in Israel and in Lebanon.
On Thursday, two missiles fired from Lebanon hit the center of Haifa, Israel's third-largest city -- extending beyond the range of any missiles fired at Israel from Lebanon in the past.
Israeli ambassador to the U.N. Dan Gillerman said many missiles that have been fired from Lebanon toward the northern Israel were made in Iran.
"Many of the long-range missiles fired into Israel in the recent days were Iranian missiles made by the same regime that is now trying to possess nuclear weapons," Gillerman said at the U.N. on Friday.
When asked by CNN what role Syria or Iran may have played in the current crisis, Lebanese Prime Minister Fouad Siniora said it would be "strange" for Hezbollah to have "done this alone."
However, Hezbollah guerrillas denied firing the two rockets, which had a range longer than previous missiles fired at Israel from Lebanon.
Israelis have been told to stay away from vulnerable areas but the government did not order them into bomb shelters.
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