Burning vehicles are seen near the village of Ghajar on Israel's border with Lebanon January 28, 2015. [Photo/Agencies]

Israeli Prime Minister Netanyahu warned Hezbollah that a larger Israeli attack may follow.

"To everyone who is trying to challenge us at the northern border, I recommend for them look what happened in Gaza," Netanyahu said shortly before entering an emergency meeting he summoned with the military's senior command to discuss further steps.

"Hamas took its hardest hit since its formation and the IDF is prepared to act strongly on all fronts," he added.

The Hezbollah attack took place near Mount Dov and Shebaa Farms, a disputed zone at the intersection of the borders of Israel, Lebanon and Syria.

Hezbollah, which largely controls southern Lebanon, and Israel fought a one-month war in 2006, and the two remain sworn enemies.