Hezbollah chief Hassan Nasrallah says his guerrilla group will fire more rockets further into central Israel.
On Friday, Hezbollah fired rockets 50 kilometers into Israel.
In his televised statement, Nasrallah said Israel has suffered a serious defeat in ground fighting at the hands of Hezbollah guerrillas.
He spoke shortly after Israeli troops pulled back from the Lebanese border town of Bint Jbail. The Israeli army lost nine soldiers in fighting before taking control of the town this week.
Meanwhile, Israeli warplanes continued to pound Lebanon Saturday. Lebanese officials say one strike killed a woman and at least five children. And Hezbollah fired more rockets into northern Israel.
In other developments, Israel rejected a U.N. call for a 72-hour truce to allow women, children and the elderly to escape the fighting and let emergency aid into Lebanon.
Israel says it has already opened humanitarian corridors across Lebanon and that Hezbollah is blocking aid shipments to create a humanitarian crisis.
Earlier Saturday, a U.S. boat arrived in Beirut with supplies for hundreds of thousands. And the U.N. refugee agency is sending its first convoys of trucks into Lebanon from Syria.
And Hezbollah announced Friday the use of a new longer range rocket the group calls the Khaibar-1. Several rockets struck near the town of Afula Friday, about 50 kilometers inside Israel, causing no injuries.
Some information for this report was provided by AFP, AP and Reuters.