The UN secretary-general has fuelled speculation that a deal leading to the release of two Israeli prisoners may be in the offing as he embarked on a delicate 11-day mission to the Middle East.
Following talks with the Lebanese cabinet, Kofi Annan urged the Hizbollah to release the two prisoners to the care of the international Red Cross.
"I ... renew my call for the abducted soldiers to be freed and as a first step to be transferred under the auspices of the ICRC (International Committee of the Red Cross) either to the government of Lebanon or to a third party," he said. The seizure of the two soldiers on 12 July in a cross-border incursion sparked Israel's 34-day onslaught.
Taking care to balance his statements during a news conference in Beirut, the UN chief also urged Israel to lift the naval and air blockade that has isolated Lebanon since the war began, as part of Israeli efforts aimed at stopping the Hizbollah's weapons supply.
Before leaving New York, Mr Annan warned in a report to the UN security council that "painful compromises" would be needed by both sides to secure the release of the Israeli prisoners, and of Lebanese fighters held by Israel.
Mr Annan is due to hold talks in Israel today and the prisoner issue is expected to be high on the agenda. There are also hopes that a deal may be struck to obtain the release of an Israeli soldier seized by the Islamic fighters based in Gaza, in return for Palestinian prisoners held by Israel.
On Sunday, the Hizbollah leader, Sheikh Hassan Nasrallah, said "contacts" had begun about a prisoner swap, possibly involving Italy and Lebanon's parliamentary speaker, Nabih Berri, a leading Shia politician and Hizbollah ally.
Israel will be keen to ensure that its soldiers are released unconditionally, and has denied that a prisoner swap is under negotiation.
Also yesterday, Mr Annan made it clear that Syria and Iran were expected to abide by the terms of the UN resolution that laid down the ceasefire terms and authorised the expansion of the UN force in southern Lebanon to police a buffer zone. "All nations should respect the arms embargo," he said, without mentioning Syria and Iran by name. "It is important that the borders are protected, and there are no attempts to rearm," he said.
Syria has threatened to close the border with Lebanon if UN troops are deployed, but Mr Annan said yesterday that the UN soldiers would not be stationed along the border.
The secretary-general played down plans to physically disarm Hizbollah, saying that the disarmament had to be resolved as part of a national agreement within Lebanon. "Let's not kid ourselves and pretend that the only way to disarm is through force," he said, referring to examples through history of the disarmament of militant groups.
The support for Hizbollah in the southern Beirut suburbs, smashed by Israeli bombs during the war, was illustrated later in the day when Mr Annan went on a walkabout to the jeers and boos of supporters holding up posters of Sheikh Nasrallah. Looking nervous as his party was surrounded by hecklers, he cut short his visit to the district.
During his tour, Mr Annan will also visit the West Bank and Gaza, Jordan, Iran, Saudi Arabia, Egypt, Turkey and Qatar which has a seat on the UN security council at present.
The Turkish government yesterday approved the deployment of a contingent of soldiers in the UN force. But parliament must still approve the government's decision, which will be a test of President Tayyip Erdogan's influence among party dissidents who remain unhappy about the UN force mandate.
Mr Annan insisted the UN troops would "not go house-to-house searching for weapons," but would have the right to shoot in self-defence. "They may have to defend themselves, but they are not there to fight," he said. The UN is expected to send 3,500 troops to southern Lebanon, but it now looks unlikely that the original deployment target of 15,000 UN troops, in addition to 15,000 Lebanese army troops, will be met.
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