Eight civilians were killed in an Hezbollah rocket attack on the northern Israeli city of Haifa this morning.
A rocket hit a storage room at the train station, killing eight people. At least 50 people were injured in the barrage.
It was the second time Hezbollah rockets hit Haifa. Israel responded to the first strike on Thursday by stepping up its airstrikes in Lebanon, which it began last week after Hezbollah militants captured two soldiers in a cross-border raid.
Reacting to the violence, Israeli Prime Minister Ehud Olmert warned there would be "far-reaching consequences" for the rocket attacks.
Hours later, an Israeli air strike on the Lebanese port city of Tyre killed at least 10 civilians.
Speaking this afternoon, Hizbollah chief Sayyed Hassan Nasrallah, said this morning's attack was just the beginning.
"We will continue. We still have a lot more and we are just at the beginning," he said in a taped televised address. "We promise them surprises in (any) confrontation."
"As long as the enemy pursues its aggression without limits and red lines we will pursue the confrontation without limits and without red lines," Nasrallah said.
"The enemy doesn't know our capabilities or what we have."
The guerrillas launched a second bombardment of rockets at Haifa and other communities across northern Israel this morning, causing more injuries, authorities said.
Rockets hit Kiryat Motzkim and Kiryat Haim, north of Haifa, and the northern towns of Acco and Nahariya. Area residents were told to head to bomb shelters.
Hezbollah said on its TV station that it fired dozens of rockets at Haifa and targeted the refinery "after the enemy continued all night their destructive shelling" of Beirut's southern suburbs and other areas.