Hezbollah denied that any of its "leaders or members" died in the strike in the Bourj al-Barajneh district of south Beirut. The explosives did not blast a leadership bunker, but a mosque under construction, the group said in a statement faxed to The Associated Press.
The strike was the most dramatic action on a day that saw Israelis clash with the guerrillas and launch strikes that killed an estimated 40 people. Israel broadcast warnings into south Lebanon telling civilians to leave the region, a possible prelude to a larger Israeli ground operation.
In Cyprus, the Orient Queen's arrival marks the first mass U.S. exodus from Lebanon since Israeli air strikes started more than a week ago. Thousands more Americans are still waiting to leave Beirut. Government officials hope to evacuate more than 6,000 more Americans by the weekend. Once the evacuees arrive in Cyprus, it's up to them to make arrangements to continue on to other destinations, including the United States, reports CBS News' Kristin Gillespie.
Other countries appear to be evacuating more their citizens more quickly. "Today in the port there are six chartered ships that are taking an estimated 30,000 Canadians out of the country, all in one go," reports . "The British and the Europeans are also continuing to evacuate their citizens. They began these efforts last week."
A U.S. Marine general coordinating the evacuation from Lebanon estimated Wednesday that more than 6,000 Americans will be taken out of that country by the weekend. Brig. Gen. Carl Jensen also stressed that the U.S. Embassy in Beirut will not close and that America "is not deserting Lebanon."
In other developments:
Politically, Hezbollah's killing of two Arab children may do more damage to the group than any Israeli air strike, reports CBS News correspondent Lee Cowan.
But Hezbollah — known for its stubbornness — doesn't seem to care.
"We're going to continue to fight because this is an imposed war against us, we're under occupation, we're under threat, we have only one choice, to defend, with our dignity, with our pride," said Ibrahim Mousawi, a Hezbollah member.
The group now controls 23 seats in Lebanon's Parliament — including two key ministry positions, Cowan reports. But it's been criticized by fellow Muslims for paralyzing the government and using it to promote it's familiar militant agenda.
"Sometimes when someone points a gun to your head you have to defend, and you have to resist," Mousawi said.
Meanwhile, Lebanon's prime minister said Wednesday that 300 people have been killed, 1,000 have been wounded and a half-million displaced in Israel's week-old onslaught on Lebanon.
Speaking to a gathering of foreign ambassadors, Prime Minister Fuad Saniora said he would seek compensation from Israel for the "unimaginable losses" to the nation's infrastructure.
He also made an urgent appeal for an end to the fighting, saying Lebanon "has been torn to shreds."
"Is the value of human life in Lebanon less than that of the citizens of other countries?" he asked.