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STORY: Smoke billows from the roof of a mall in the northern Israeli city of Acre, after a rocket barrage launched from Lebanon was intercepted overhead, a video obtained by Reuters showed.

Reuters was able to corroborate the video.

Lebanon's Hezbollah launched a major rocket and drone attack on Israel on Thursday (July 4) and threatened to hit new targets in retaliation for the killing of a top commander a day earlier in the south of the country, the latest surge of violence in the steadily worsening border conflict.

Sparked by Gaza, the conflict between Iran-backed Hezbollah and Israel has raised fears of a full-scale war, which both sides have indicated they want to avoid and diplomatic efforts, led by the United States, are working to prevent.

Mohammed Nasser was one of the most senior Hezbollah commanders Israel has killed during the conflict.

Senior Hezbollah official Hashem Safieddine, speaking at a memorial for him, said the group would widen its targets after his killing.

"The series of responses continues in succession, and this series will continue to target new sites that the enemy did not imagine would be hit."

Sonic booms rattled nerves for the second day in Beirut and other parts of Lebanon as Israeli jets broke the sound barrier, Lebanese state media reported.

Hezbollah said it launched more than 200 rockets and a swarm of drones at 10 Israeli military sites on Thursday (July 3).

The Israeli military distributed videos it said showed interceptions as well as strikes on Hezbollah targets in Lebanon.

The hostilities have inflicted a heavy toll on both sides of the frontier, forcing tens of thousands of Lebanese and Israelis to flee their homes.