An Israel soldier was killed and three others were lightly wounded Wednesday in an exchange of fire with Hezbollah in the Sheba Farms area along the Israel-Lebanon border.

At least one Hezbollah fighter was killed in the confrontation, according to an army source.

Later in the day, Israel Air Force jets attacked targets inside Lebanon.

According to the military source, the exchange of fire took place as a group of Hezbollah fighters was spotted crossing the borders into Sheba Farms.

Hezbollah presented an opposite story, saying that his fighters spotted Israeli troops crossing the UN-drawn ‘blue line’ (the international border) into the Lebanese territories.

‘One of our forces spotted Israeli soldiers crossing the blue line and responded,’ said Sheikh Nabil Qauq, a Hezbollah leader in South Lebanon

Israel has lodged a complaint about the Hezbollah action with the commander of the United Nations Interim Force in Lebanon.

Wednesday night, Israel warned of a severe attack on Hezbollah and Lebanon if the escalation along the northern border continued.

The incident took place in the midst of a stormy political environment in Lebanon, where Hezbollah’s right to hold arms is being questioned by opposition groups that won a majority in the latest parliamentary elections.ÂÂ