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2 Israelis captured, Israel enters Lebanon

JERUSALEM, July 12 (UPI) -- Israel began shelling Hezbollah targets in Lebanon Wednesday after two Israeli soldiers were taken captive along the border.

The Israeli raid came in response to a border rain by the militant group Hezbollah in which at least seven Israeli soldiers were killed, The New York Times reported.

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Hezbollah's Al Manar TV said the organization had kidnapped the two Israeli soldiers, and that at least one was still alive.

Lebanese sources report two civilians and an armed man had been killed in Israeli air raids, the Arutz Sheva newspaper reported.

Israeli military leaders said the border attack appeared to be Hezbollah's response to Israel's attempted strike earl Wednesday on top Hamas terrorist Mohammad Deif in Gaza, the Jerusalem Post reported. At least 20 Palestinians were killed in Gaza Wednesday, most in airstrikes and many of them civilians, the Times said, citing Palestinian medical personnel..

Israel's Channel 10 reported Hezbollah is demanding the release of thousands of people jailed by the Israelis, forming a united front with the Palestinian kidnappers of Cpl. Gilad Shalit, who went missing June 25.

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Israeli Prime Minister Ehud Olmert was attending a welcoming ceremony for visiting Japanese Prime Minister Junichiro Koizumi when he was informed of the development.

"There are elements in the north and in the south who are threatening our stability and are trying to test our steadfastness. They will fail, and pay a heavy price for their actions," he said.

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