Dubai: Fierce Hezbollah resistance forced Israeli tanks to withdraw from two key Lebanese towns yesterday as diplomatic efforts to end the war in Lebanon intensified.

Hezbollah said its fighters had killed 18 Israeli soldiers in ground battles around Marjayoun and Khiam, 8km north of the border. Israel, however, claimed eight of its soldiers were wounded in the fighting. Lebanon's interior minister said later Israeli troops have detained about 350 Lebanese soldiers and police in Marjayoun.

Columns of Israeli tanks surrounded the two towns early morning although Israeli government insisted its expanded offensive was on hold "to give diplomacy a chance" to end the conflict.

The Israeli army claimed it had seized control of Marjayoun, a Christian town, before fierce fighting forced them to pull out. Witnesses said Hezbollah launched a counter-offensive against Israelis trying to advance on Khiam, and several Israeli tanks were destroyed during the group's counter-attack amid violent clashes. Hezbollah said it destroyed 14 Merkava tanks.

In Tel Aviv, Public Security Minister Avi Dichter said the timing of Israel's ground offensive "depends to a great extent on what is happening now" at the United Nations.

Other Israeli officials said the ground war would cost Israel more lives. "Eighteen casualties in one day proves what price we could pay if we do not try to make the most of the political move," Deputy Prime Minister Shimon Peres said.

In New York, officials said a revised UN resolution will stop short of requiring peacekeepers to disarm Hezbollah but will call for an embargo to prevent the group from bringing in arms. It would also call for creation of "an emboldened UN force in Lebanon," a political source said.

- With additional inputs from Agencies