The Israeli military confirmed that a Hezbollah missile had reached the surrounding areas of the city of Tel Aviv.
"It is the first time ever a Hezbollah missile reached (the) Tel Aviv area. It was intercepted by IDF (the Israeli military)," an army spokesman told AFP news agency. The missile was shot down, and no damage was reported, the military said.
The Hezbollah militant group earlier said it fired a rocket targeting Israel's Mossad spy agency headquarters near Tel Aviv, which Hezbollah blames for the assassination of its leaders and the earlier communications devices attacks on its members.
"Hezbollah is definitely trying to escalate the situation ... this is just part of it," said military spokesman Nadav Shoshani about the firing of the surface-to-surface missile at Tel Aviv.
"They are ... trying to terrorize more and more people," Shoshani added.
Israel's military said it struck the launcher that fired the missile in the Nafakhiyeh area of southern Lebanon.
Israeli strikes continue for a third day in southern Lebanon
Israeli airstrikes targeted Hezbollah facilities in Lebanon overnight, including weapons depots, missile launchpads and groups of fighters, the Israeli military said on Wednesday morning.
The Israeli Defense Forces said that upon attack, subsequent explosions indicated large quantities of stored weapons.
The attacks follow the confirmed death of one of Hezbollah's top commanders, Ibrahim Kobeisi. He was killed in an Israeli airstrike in a southern suburb of Beirut.
The strike hit three floors of a six-story building. It was Israel's third strike on Beirut in less than a week.
In a statement, the Iranian-backed group announced the death of "commander Ibrahim Mohammed Kobeisi," who was "martyred on the road to Jerusalem," the phrase Hezbollah uses to refer to fighters killed by Israeli forces.
Egypt, Iraq and Jordan say Israel warn of 'all-out war'
The foreign ministers of Jordan, Egypt and Iraq discussed the situation in Lebanon on the sidelines of the 79th session of the United Nations General Assembly in New York.
In a joint statement on Wednesday, the three countries condemned Israel's "aggression" against Lebanon, warning that it is "pushing the region towards all-out war,"
The ministers said that stopping the "dangerous escalation underway in the region ... begins by halting Israel's aggression in Gaza."
They called on the international community and the Security Council to intervene to stop the war and attributed Israel full responsibility for the current state in the conflict, warning that it has serious consequences for the entire region.