Beirut (AFP): Lebanese official media said an Israeli strike Monday wounded three people in the country's east, with Hezbollah saying it launched "dozens of Katyusha rockets" at an Israeli base in retaliation.

Israel and Lebanon's Hezbollah have exchanged regular cross-border fire since Palestinian militant group Hamas's unprecedented October 7 attack on southern Israel sparked war in the Gaza Strip.

In recent weeks Hamas-ally Hezbollah has stepped up its attacks on northern Israel, and the Israeli military has struck deeper into Lebanese territory.

"Enemy warplanes launched a strike at around 1:30 am this morning on a factory in Sifri, wounding three civilians and destroying the building," Lebanon's official National News Agency said.

Sifri is in Lebanon's eastern Bekaa Valley in the Baalbek area, a Hezbollah stronghold that Israel has repeatedly struck in recent weeks, located around 80 kilometres (50 miles) from the Israel-Lebanon frontier.

The Israeli army said its warplanes "struck a Hezbollah military structure... deep inside Lebanon," referring to the location as "Safri".

Lebanon's Iran-backed Hezbollah group said it launched "dozens of Katyusha rockets" targeting "the headquarters of the Golan Division... at Nafah base" in the Israeli-annexed Golan Heights.

The strikes by Hezbollah on Israel came "in response to the enemy's attack targeting the Bekaa region", it said.

Hezbollah later claimed a drone attack on troops in northern Israel, with the Israeli army saying "a UAV (drone) was identified crossing from Lebanon into the area of Metula".

The army also said "fighter jets struck approximately 15 (Hezbollah) military structures and terror infrastructure" in south Lebanon.

Last month, a building in Sifri was targeted in an Israeli raid, while the Israeli army said it had targeted Hezbollah sites in Lebanon's east.

The intensifying exchanges have stoked fears of all-out conflict between Israel and Hezbollah, which went to war in 2006.

In Lebanon, at least 390 people have been killed in nearly seven months of cross-border violence, mostly militants but also more than 70 civilians, according to an AFP tally.

On Sunday official media in Lebanon said an Israeli strike on a southern village killed four family members, with Hezbollah announcing retaliatory attacks.

Israel says 11 soldiers and nine civilians have been killed on its side of the border.

Tens of thousands of people have been displaced on both sides.

Islamabad: Asian Development Bank (ADB) on Monday reaffirmed continued support to Pakistan.

The assurance was given by President Asian Development Bank Masatsugu Asakawa during a meeting with a Pakistani delegation led by Minister for Economic Affairs Ahad Khan Cheema in Georgian Capital Tbilisi.

The President ADB reposed trust in Pakistan’s reform agenda and appreciated the required tough stabilization measures taken by the Government to bring about macroeconomic stability in the country. He assured Pakistan of its continued support in the areas of Public Private Partnership, climate and disaster resilience enhancement, Domestic Resource Mobilization, promoting Women Inclusive Finance and Energy Sector reforms.

The Minister urged ADB to deploy the additional resources towards high impact interventions including climate actions in the most vulnerable countries.

Earlier, speaking during the business session of the ADB’s Board of Governors, Minister for Economic Affairs Ahad Cheema highlighted Government of Pakistan’s firm commitment to wide-ranging program to unlock Pakistan’s economic growth potential. He said the economy is now on the consolidation path with improvements in inflation and some recovery of economic growth.

Ahad Cheema also held meetings with the senior leadership of the Asian Infrastructure Investment Bank and European Investment Bank to discuss their ongoing development portfolios in Pakistan and priority areas for future support. He also held meetings with bilateral development partners including the United Kingdom, Germany and USA to further strengthen bilateral cooperation in key priority areas including end to end digitalization of taxation system, energy infrastructure and climate change.

London (Reuters): Oil futures climbed on Monday after Saudi Arabia hiked June crude prices for most regions and as the prospect of a Gaza ceasefire deal appeared slim, renewing fears the Israel-Hamas conflict could still widen in the key oil-producing region.

Brent crude futures were up 77 cents, or 0.9%, to $83.73 a barrel at 1055 GMT, while U.S. West Texas Intermediate crude futures were at $78.98 a barrel, up 87 cents, or 1.1%.

Last week, both futures contracts posted their steepest weekly loss in three months, with Brent falling more than 7% and WTI down 6.8%, as investors weighed weak U.S. jobs data and the possible timing of a Federal Reserve interest rate cut.

The geopolitical risk premium in oil prices also eased as talks for a Gaza ceasefire were underway.

However, prospects for a deal faded as Hamas reiterated its demand for an end to the war in exchange for the freeing of hostages and Israel appeared poised to launch a long-threatened assault in the southern Gaza Strip.

On Monday, Israel's military called on Palestinian civilians to evacuate Rafah as part of a "limited scope" operation.

"News that Israel wants to go ahead and extend its operation into Rafah risks derailing a potential ceasefire agreement and reigniting Middle Eastern geopolitical tensions which had appeared to be easing," IG markets analyst Tony Sycamore said.

Also supporting oil was Saudi Arabia's move to raise the official selling prices (OSPs) for its crude sold to Asia, Northwest Europe and the Mediterranean in June, signalling expectations of strong demand this summer.