U.S. officials believe Israel will target military and energy sites in Iran, NBC reports

Beirut/Cairo (Reuters): U.S. officials believe Israel has narrowed down targets in its potential response to Iran's attack this month to military and energy infrastructure, NBC reported on Saturday.

The Middle East remains on high alert for further escalation in a year of war as Israel battles Iran-backed groups Hezbollah in Lebanon and Hamas in Gaza.

Israel has repeatedly said it will respond to Iran's missile barrage on Oct. 1, which was launched in retaliation for Israel's military operations in Gaza and Lebanon and the killings of a string of Hamas and Hezbollah leaders.

There is no indication that Israel will target nuclear facilities or carry out assassinations, the NBC report said, citing unnamed U.S. officials and adding that Israel has not made final decisions about how and when to act.

U.S. and Israeli officials said a response could come during the current Yom Kippur holiday, according to the report.

The conflict between Israel and Hezbollah militants erupted a year ago when Hezbollah began launching rockets at northern Israel at the start of the Gaza war, and has sharply escalated in recent weeks.

Hezbollah said on Sunday it was fighting Israeli forces trying to infiltrate Ramya village in southern Lebanon.

Israel's military said it continues to operate in southern Lebanon to dismantle "terrorist infrastructure".

"Over the past day, the IAF (air force) has struck approximately 200 Hezbollah targets deep in Lebanon and southern Lebanon, including terrorist cells, launchers, anti-tank missile posts, and terrorist infrastructure sites," it said.

Israel also said five launches that crossed from Lebanon were intercepted by the air force.