A fire rages in a field in southern Lebanon along the border with Israel on September 1, 2019 after an exchange of fire between Hezbollah and the Israeli army following a week of rising tensions (AFP Photo)

KIRYAT SHMONA, Israel (AFP) — Israel and Hezbollah exchanged fire along the Lebanese border after a week of rising tensions, sparking fears of an escalation and prompting concern from world powers.

Israel said it responded with around 100 artillery shells Sunday after Hezbollah fired two or three anti-tank missiles at a battalion headquarters and military ambulance, hitting both.

Israeli officials refuted claims by the Iranian-backed movement that it had killed and wounded those inside the military vehicle, saying there were no casualties.

“We are consulting about the next steps,” Israeli Prime Minister Benjamin Netanyahu said.

“I have ordered that we be prepared for any scenario.”

The UN called for restraint and France said it had made “multiple contacts” to avert an escalation.

The United States voiced concern over the “destabilising role” of Iranian proxies in the region and said it “supports Israel’s right to self defense,” a State Department official said.

“Hezbollah should refrain from hostile actions which threaten Lebanon’s security, stability and sovereignty,” the official added.

Earlier Lebanon’s Prime Minister Saad Hariri contacted senior US and French officials to urge their countries and the international community to intervene.

Hours after the flare-up, Israeli military spokesman Jonathan Conricus said the “tactical event” near Avivim, an Israeli community near the Lebanese border, was most likely over but that the “strategic situation is still ongoing.”

Israel had targeted the unit that fired the missiles, he said.

Hezbollah said its fighters had “destroyed a military vehicle on the road to the Avivim barracks, killing and wounding those inside.”

Its Al-Manar TV said the group targeted a Wolf armored vehicle that can fit eight soldiers.