Hezbollah claims it targeted an Israeli military unit near the Lebanon border, while Israel says it downed 10 Hezbollah drones.
Tensions are escalating with both sides issuing threats of all-out war.
Hezbollah leader Nasrallah warned of "no restraints" if Israel attacks Lebanon.
Israeli officials vowed to "destroy" Hezbollah but suffer losses.
The militants boast new weapons and drones, raising miscalculation risks despite neither side wanting full-scale conflict.
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