Hezbollah steps back from all-out war on Israel over Gaza - for now

The Hezbollah leader took his time to respond to the past month of bloodletting which has turned the Middle East into a tinder box.

And when Hassan Nasrallah spoke, what he did not say was as important as what he said.

There was no declaration of all-out war on Israel. At least, not now.

Few in Lebanon had expected one.

Nasrallah knows there is little appetite in this country for another war with its powerful neighbour. The last one was in 2006.

Lebanese have troubles enough, with a shattered economy and a bankrupt political system.

That is a powerful deterrent, along with the two American aircraft carriers recently deployed to the eastern Mediterranean.

Hassan Nasrallah addressed the segregated rally - thousands strong - by video link from an undisclosed location.

It was not just his supporters who were hanging on his every word. His speech was required listening in Tel Aviv and in Washington. What Hezbollah does - or does not do - could be crucial now.

The Hezbollah leader declared that "all options are open," adding that "the situation could escalate militarily at any time".

That would depend, he said, on Israel's actions in Gaza, and its approach towards Lebanon.

Hezbollah is already stepping up the pressure on Israel with an escalation in cross-border attacks, which has forced the Israeli army to divert troops to the area.