July 24 (Bloomberg) -- Secretary of State Condoleezza Rice arrived in Israel after a surprise visit to Beirut to express U.S. concern over what could become a humanitarian crisis. The Bush administration promised to deliver aid to war-torn Lebanon.

Israel's jets continued to strike Hezbollah installations in Lebanon and soldiers advanced in the southern part of the country. Rice met with Prime Minister Fouad Siniora of Lebanon before heading to Jerusalem to talk to Israeli officials.

``I'm obviously concerned about the humanitarian situation,'' Rice told reporters in Beirut. ``We're also taking about a durable way to end the violence.''

In Washington, White House Press Secretary Tony Snow said the U.S. is planning a ``significant'' delivery of humanitarian aid to Lebanon as the Arab country endured its second week of fighting. The assistance may begin arriving as soon as tomorrow, Snow said.

About 40 demonstrators gathered in the street outside the Beirut home of Nabih Berri, the Lebanese parliament speaker, while Rice met with him. The protesters carried signs that said, ``End the Siege'' and ``4 million Lebanese are being held hostage.''

In the fighting, soldiers engaged in ``a heavy exchange'' of gunfire north of Maroun ar-Ras, a Lebanese village about 2 kilometers (1.2 miles) from the border, an Israel Defense Forces spokeswoman said by phone, speaking anonymously by regulation. There were casualties on the Israeli side and two men suspected of terrorism were detained, she said, adding that troops were also attacked with anti-tank missiles and mortars.

Troop Position

The spokeswoman declined to comment about the exact position of the troops, saying only the army is ``widening the area it's operating in.'' Lebanon's LCB International TV showed Israeli tanks advancing near Bint Jubayl, a nearby village.

Hezbollah Secretary General Hassan Nasrallah told Lebanon's as-Safir newspaper the incursions won't stop his Shiite group from firing rockets. ``We are truly in a state of war,'' he said as fighting went into a 13th day.

Hezbollah rejected the presence of an international force in southern Lebanon after Israeli Prime Minister Ehud Olmert said yesterday the government may accept a force in Lebanon as a means of ending the conflict, as long as it's manned by European Union troops and monitors Lebanon's border with Syria. Rice will meet Olmert after her Beirut talks.

Controlled by Hezbollah

Southern Lebanon, adjacent to Israel's northern border, is controlled by Hezbollah, a terrorist organization sponsored by Syria and Iran. A United Nations resolution calls for the group's disarmament and for the Lebanese army to take over the area. The group's kidnapping of two Israeli soldiers July 12 sparked the conflict.

The use of European Union troops would mark a turnaround in Israeli policy. Previously, Israel has always insisted on a role for the U.S., its main ally, such as in the multinational force that policed Sinai when it was handed back to Egypt in 1981.

``We do not feel that we are currently interested in discussing ideas or initiatives,'' Nasrallah said, according to the as-Safir Web site. ``The priority is to stop the Israeli aggression, and when things reach the phase of serious discussions over ideas and initiatives we'll be ready to propose our ideas.''

More than 370 Lebanese and 37 Israelis, including 20 soldiers, have died during the conflict. Hezbollah said 13 of its fighters have been killed. Lieutenant-General Dan Halutz, Israel's chief of military staff, said three days ago that 100 Hezbollah fighters had been killed.

Bush Position

The U.S. maintained its opposition to an immediate cease- fire as Bush administration spokesman Snow said that any halt in the hostilities must be ``sustainable'' and a way to do that hasn't emerged yet.

``Hezbollah doesn't intend to honor a cease-fire,'' Snow said. Rice's mission in the region is to create ``conditions that are going to provide a sustainable peace.''

Bush and Rice previously have said that any plan for a cease-fire must include the disarmament of Hezbollah and putting the Lebanese government in control of the southern border area.

Israeli Foreign Minister Tzipi Livni said yesterday that military operations won't be interrupted by Rice's visit or those of other diplomats this week. Livni indicated they could continue for some time to ensure Hezbollah couldn't restore its military capabilities.

Nasrallah, in the as-Safir interview, repeated his stance that Hezbollah will stop fighting and free the two soldiers only if Israel agrees to an unconditional cease-fire and releases three Lebanese, and possibly other Arabs, in its jails.

Mediate Talks

He said his group will allow the Lebanese government to mediate talks about a swap, and wouldn't object to other mediators like Germany, which brokered previous exchanges between Hezbollah and Israel.

The soldiers are still with Hezbollah, Nawwar Sahili, a leading representative of Hezbollah and member of the Lebanese parliament, said in an interview today.

Israeli jets carried out more than 40 attacks on targets in Lebanon during the night, including nine missile-launching areas directed at Haifa, Israel's third-biggest city, the IDF spokeswoman said. Lebanese police said four people were killed in raids yesterday.

Saudi Foreign Minister Prince Saud al-Faisal met with President George W. Bush and Rice yesterday and said later he pressed the president work for a cease-fire. He said the U.S. and Saudis agree that the humanitarian situation in Lebanon must be addressed.

Basic Supplies

George Kitani, director of emergency services for the Red Cross, said in an interview from Beirut that there are more than 700,000 refugees in need of basic supplies.

``There are a lot of people who don't have water or food or anything, milk for children and other things. We are in a very bad position,'' he said. ``We hope we can have a cease-fire, or something to move the refugees.''

Vice Prime Minister Shimon Peres said yesterday ``Israel will do all it can to avoid a humanitarian crisis in Lebanon.''

In Haifa, police Commander Nir Meriesh told reporters at a briefing in the city that at least half of the city's 250,000 residents had left as of July 16.

Many refugees had thought it would be safe to return until two more rockets struck yesterday, killing two.

``When they heard about the rockets yesterday they just turned around and headed back south,'' Meriesh said. Virtually all the businesses in Haifa with a few exceptions, like mini- markets and some restaurants, are closed.

Hezbollah fired one Katyusha rocket into Israel overnight, the army said. It fired more than 90 yesterday, six of which hit Haifa, killing two people, police said.

Hezbollah Rockets

Defense Minister Amir Peretz said Hezbollah has fired about 2,200 rockets since fighting began July 12, half of which have struck northern Israeli towns, the Israeli daily Haaretz reported. The Israeli military considers the group will be able to keep firing missiles for a month unless operations against their bases are stepped up, the newspaper reported, without saying where it obtained the information.

Since Israel pulled out of Lebanon in 2000 and until the beginning of the current fighting, Hezbollah had killed six civilians and wounded 17, including two in two separate rocket attacks, the army said.

Israel hasn't launched a full-scale military attack on Lebanon or Hezbollah since its troops were pulled out of a swath of southern Lebanon held for 18 years until May 2000. Several thousand reserve troops were mobilized three days ago for the first time since the conflict began. The UN peacekeeping force in Lebanon now has about 1,990 troops there. The contingent has failed to prevent the fighting.

Crude Oil

Crude oil for September delivery fell as much as 93 cents, or 1.3 percent, to $73.50. The Middle East provides a third of the world's oil.

Israel started its attack on Lebanon two weeks after it sent its forces into the Gaza Strip when a group led by the Islamic Hamas movement kidnapped a soldier in a cross-border raid on June 25. Israel unilaterally withdrew from Gaza in 2005, razing Jewish settlements it established after seizing the area from Egypt in the 1967 Six-Day War.

To contact the reporters on this story: Caroline Alexander in Jerusalem at Calexander1@bloomberg.net; Maher Chmaytelli in Beirut at mchmaytelli@bloomberg.net

Last Updated: July 24, 2006 13:52 EDT