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Death and Destruction Multiplied as Israel Continues to Strike Hezbollah Targets in Lebanon; Hezbollah Drops Powerful Rockets in Israel; President Bush, Tony Blair Push For U.N. resolution to End Mideast Fighting Long-Term; Relief Officials Worried About Humanitarian Situation in Lebanon; Some Experts Say U.S. Refusal to Talk to Damascus Hampers Efforts To End Fighting; Environmental Crisis in Lebanon

Aired July 28, 2006 - 16:59   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


WOLF BLITZER, CNN ANCHOR: And to our viewers, you're in THE SITUATION ROOM, where new pictures and information are arriving all the time.
Standing by, CNN reporters across the United States and around the world to bring you today's top stories.

Happening now, death and destruction multiplied as Israel continues to strike Hezbollah targets in Lebanon and Hezbollah drops rockets nearly five times more powerful inside Israel.

Does Israel face threats from the sea right now from ship-based rockets to lone terrorists on jet skis? We're going to show you some extraordinary videotape.

And it's 5:00 p.m. in Washington, where President Bush and the British prime minister, Tony Blair, say they will seek a U.N. resolution to end the fighting. And a hint that if Hezbollah does not yield it could wind up fighting more than just Israel.

I'm Wolf Blitzer in Jerusalem, and you're in THE SITUATION ROOM.

The 17-day-old war here in the Middle East ratchets up. Hezbollah shoots rockets deep inside Israel, five times more powerful than the already destructive rockets they've been firing. Each of these new ones carried 220 pounds of explosives, and each landed in the northern Israeli town of Afula.

Meanwhile, Israel continues to pound Hezbollah targets in Lebanon. A United Nations official wants the war to stop, if only long enough to allow the delivery of badly needed assistance. The U.N.'s emergency aid relief coordinator is pushing for a 72-hour cease-fire.

We just got some reaction from the Israelis.

President Bush, meanwhile, and British Prime Minister Tony Blair say Syria and Iran are behind all of this violence. The leaders met in Washington today, saying the only way to end the fighting is to address what they called the root cause of the problem. CNN is uniquely positioned throughout the Middle East to cover this story. Our reporters have the latest on all the fresh developments.

John King is here in Jerusalem. CNN's Nic Robertson is in Beirut.

But first, let's go to CNN's Matthew Chance. He's joining us from northern Israel.

What a day today in Israel, Matthew.

MATTHEW CHANCE, CNN SR. INTERNATIONAL CORRESPONDENT: Absolutely. And according to the Israeli authorities, Wolf, the rocket that struck -- or three of the rockets, in fact, that struck the Israeli town of Afula earlier on today were of a type that haven't been fired at Israel before. Much, much more powerful than the regular Katyusha rockets that we've seen raining down on towns and cities across the north of this country for the past several weeks.

Experts are at the scene. Of course they're investigating exactly what kind of rocket it is.

There's a great deal of mounting concern, in fact, amongst many Israelis about the kind of arsenal of missiles that Hezbollah controls. The Hezbollah leader, Hassan Nasrallah, has, of course, threatened, vowed to strike at Tel Aviv, Israel's biggest city, with his biggest missiles.

Now, it's understood that this missile was not the most powerful that Hezbollah has at its disposal. But -- at its disposal. But nevertheless, it's being viewed as a major escalation in this conflict.

On the ground, meanwhile -- or rather, from the air, coming alongside these rockets, a barrage of other rockets from Hezbollah as well. More than 100 striking various locations across northern Israel over the course of this day, including one that hit a hospital in Nahariya, an Israeli town in the north.

Nobody was injured in that hospital as a result of the missile strike, though, because Nahariya has been struck so many times in the past, over the past few weeks, all of the patients were taken into underground shelters, especially built underneath that hospital. So that was a lucky escape for these people recovering in hospital in Nahariya -- Wolf.

BLITZER: And Matthew, give our viewers a little sense -- you're there on the front lines. What's it like when you get that little advance warning, whether it's 20 seconds or two minutes, that there's incoming Katyusha rockets, describe a little bit what happens.

CHANCE: Well, from where I'm standing right now, I'm actually right on the Israeli-Lebanese border. About 100 yards behind me is where the border fence is. And you can hear perhaps the artillery that's being fired sort of regularly from here on Israel's side into Hezbollah strongholds on the Lebanese side.

We're not getting those kind of alarms that the people of Haifa are having to respond to or the people in other towns that are deeper into Israel, because what Hezbollah are trying to do is fire those rockets as deeply into Israel as they can. They're simply not striking this border area with the Katyushas.

It's more of a close combat situation with Israeli forces. And indeed, over the course of the past several hours, Israeli forces have been in close contact with Hezbollah militias.

They're saying to us that in the last few minutes that they've killed at least 26 Hezbollah fighters around that Hezbollah stronghold of Bint Jbeil, where much of the bloodiest and close combat fighting has been taking place -- Wolf.

BLITZER: All right, Matthew. Thank you very much.

Matthew Chance reporting all the late-breaking news for us, including the statement from the IDF that 26 Hezbollah militants were killed today in the area of Bint Jbeil. That's in southern Lebanon, where there has been fierce fighting, fierce fighting over these past several days. Apparently that fighting continues.

Meanwhile, President Bush says he hopes to turn this moment of crisis into a moment of opportunity. The president met with the British prime minister, Tony Blair, over at the White House. Both said they will push for a U.N. resolution to end the fighting for the long term.

Our White House correspondent, Suzanne Malveaux, is standing by with more details -- Suzanne.

SUZANNE MALVEAUX, CNN WHITE HOUSE CORRESPONDENT: Well, Wolf, before their meeting, British officials said that British Prime Minister Tony Blair would be pushing President Bush to really emphasize the sense of urgency in ending the violence. That is what we heard today.

We also heard both men, of course, refusing to support an immediate cease-fire. But what they said is they've got an immediate plan, laid out that plan for a permanent peace, what they hoe is a permanent solution.

First, sending Secretary of State Condoleezza Rice back to the region tomorrow to meet with leaders o Lebanon and Israel for additional talks.

Secondly, on Monday, the United Nations meeting to come up with an agreement over an international stabilization force to help the Lebanese army secure the border.

And third, of course, trying to come with a U.N. resolution by the end of the week for some sort of long-term peace strategy.

Both of these leaders very sensitive to the criticism that they don't recognize or realize the kind of civilian casualties, the difficulty on the ground with Lebanon and Israel. Of course, both of these leaders emphasizing that in fact they do.

(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Our instructions are to work with Israel and Lebanon to get a -- to come up with an acceptable U.N. Security Council resolution that we can table next week.

And secondly, it's really important for people to understand that the terrorists are trying to stop the advance of freedom. And therefore, it's essential that we do what's right, not necessarily what appears to be immediately popular.

(END VIDEO CLIP)

MALVEAUX: And Wolf, of course it's a familiar refrain that we've heard from both leaders, who before said that -- essentially the same thing in the lead-up to the invasion of Iraq. Both of these leaders standing together, but also somewhat isolated from the rest of the international community -- Wolf.

BLITZER: All right, Suzanne.

Suzanne Malveaux at the White House.

Thanks very much.

And one footnote. The secretary of state, Condoleezza Rice, expected to return to the Middle East tomorrow, this weekend. She should be here in Jerusalem tomorrow night. We'll see what happens with her efforts at shuttle diplomacy.

In its latest strikes, Israel pounded more than 100 Hezbollah targets in Lebanon. Let's bring back our senior international correspondent, Nic Robertson. He's joining us from Beirut with a complete wrap-up on today's developments -- Nic.

NIC ROBERTSON, CNN SR. INTERNATIONAL CORRESPONDENT: Well, Wolf, we've just spoken with a Hezbollah official about the call for a 72- hour cease-fire by the U.N.'s chief humanitarian relief coordinator, Jan Egeland. The Hezbollah official we spoke to said that Hezbollah had not been officially contacted by the U.N. at this stage, that when they were that they would give this issue consideration. They expect to have an official statement early in the morning.

We have talked with another political organization that is aligned with Hezbollah here. They say, again, they haven't heard an official request from the U.N. for this cease-fire. They say that it's what they've been calling for all along, is an immediate cease- fire.

Of course, the cease-fire the U.N. is talking about is just 72 hours. They say it's going to depend on what terms and conditions are attached to this 72-hour cease-fire, but they, too, say they will give it consideration on the ground here.

The Hezbollah-affiliated television -- Al Manar television has been playing pictures of missiles taking off from inside Lebanon. Underneath that, with a banner talking about the new the Khaibar 1 missile, this missile that has been fired further into Israel than any other Hezbollah missile.

It's not clear if the pictures that are being played on Al Manar TV are in fact pictures of this missile. But certainly, the missile itself is being played up prominently on Hezbollah's affiliated television station here.

We've also heard from journalists on a humanitarian convoy in the south of the country today that came -- that was caught in the crossfire. People on that convoy injured. And, of course, many U.N. nongovernmental organizations here are very keen to see that U.N. cease-fire, a 72-hour cease-fire, put into effect.

The UNHCR, the refugee agency at the U.N., UNICEF, the Children's Agency, Oxfam, Mercy Corps, many other relief organizations here calling, want to see this -- want to see this 72-hour cease-fire put into place, they say, so that they can get in to bring relief supplies in and get out all the old people, all the young people and all the injured people from the south of Lebanon -- Wolf.

BLITZER: Thank you very much.

Nic Robertson in Beirut.

And the last hour here in THE SITUATION ROOM you may have seen him live, a top official of the Israeli Foreign Ministry saying Israel also has not yet officially received that request from the United Nations for a 72-hour humanitarian cease-fire. If it gets that request, the official, Gideon Meir, saying that Israel would study and respond. Israel insisting, though, it is cooperating right now in trying to allow U.N. supplies to come in to badly needed Lebanese.

Let's go to New York. Jack Cafferty once again with "The Cafferty File" -- Jack.

JACK CAFFERTY, CNN ANCHOR: Thanks, Wolf.

The United States and Britain on the same page yet again when it comes to another war. Last time it was Iraq. This time it's the fighting between Israel and Hezbollah.

President Bush, Prime Minister Tony Blair both say they're going to go after a U.N. resolution next week that would end the fighting in Lebanon. They agree, though, that any plan to end the violence must address long-running disputes in the region. And that sets them against much of Europe, as well as many Arab nations who want an immediate cease-fire.

Meantime, Tony Blair is under mounting pressure at home from critics who call him America's poodle.

That's very nice.

A recent poll shows a majority of Britons say the prime minister should show more independence from the United States. Members of his own party have called on him to take a hard line when he met with Mr. Bush earlier today.

The question is this: Is it a mistake for the United States and Britain not to push for an immediate cease-fire in Lebanon?

E-mail your thoughts, CaffertyFile@CNN.com or go to CNN.com/CaffertyFile -- Wolf.

BLITZER: Jack, thank you.

And up ahead, trapped in Tyre. That's in southern Lebanon. Civilians caught in the crossfire with supplies running out and conditions deteriorating. We're going to go there for the latest.

Also, threats from the sea. Israel facing a growing number of maritime attacks. We're going to show you what's going on in an exclusive report and some video you're going to want to stick around to see.

We're also watching what's going on in Lebanon as far as an environmental crisis unfolding.

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: As we reported, Hezbollah has now launched its most powerful rockets yet into Israel with some of its deepest strikes into this country.

Let's get some perspective. CNN's Tom Foreman is in Washington -- Tom.

TOM FOREMAN, CNN CORRESPONDENT: Wolf, there's very important things to know about this rocket strike because they tell us something about Hezbollah right now. Let's fly in here.

Israel's down here. Lebanon's up above. This is the town we're talking about, Afula. But if we go to the other side of the border, we can get a little bit of perspective on what happened.

Let's say the rocket is launched from somewhere down in this area and it goes flying up over this range and it heads down here to Afula. This is sort of a rocket's eye view of what would happen.

It didn't actually hit in the town. It hit in the outskirts. Three of these rockets today, these things they call the Khaibar 1s, which the Israelis think are modified versions of the FAJR rockets which they've already been firing, rockets have reached almost this far before. They've hit outside Afula. Some of them have been these Katyusha rockets which have been somehow modified. So you get the sense here that even though this is literally rocket science, it's heavy on the rocket, light on the science. Some of these things go further than expected.

But here's what we do know. If it is a modified FAJR rocket, they have a range of about 45 miles.

Look at this. Afula's down here. That would put the firing range of it up into this area, which means -- let's pull this map down just a tiny bit -- that rocket had to be fired in this area. And that matches roughly with the size of the buffer zone that Israel wanted to have.

These rockets are different than Katyushas because they cannot be fired by a guy just dashing out of the trees and shooting them. This type of rocket, the three that hit down here today that we're talking about, have to be fired from launchers which are normally mounted on the backs of vehicles, trucks, very often Mercedes-Benz trucks.

And the point is, when you have big equipment like that, you're starting to play the game that big armies like Israel want to play, because when you have to move a truck, when you have to move a big rocket and set it up, when you fire it you expose your position in a big way. And those are the rockets they want to get.

So this is bad news that the rockets are coming down this far for Israel, good that they didn't hit anybody, but good in another way too, Wolf, because this exposes for the Israelis where this came from. We're not hearing much about that now, but I bet we're going to in the next 24 hours -- Wolf.

BLITZER: And the conversations I've had here this week in Israel, Israeli military officials point out they're watching virtually every inch of south Lebanon. If they see a flash go off, they respond as quickly as they possibly can to do something about that launch.

Tom Foreman, excellent reporting. Thank you very much.

Speaking of southern Lebanon, the situation there growing increasingly desperate for civilians still trapped.

CNN's Ben Wedeman has the latest from the city of Tyre -- Ben.

BEN WEDEMAN, CNN INTERNATIONAL CORRESPONDENT: Wolf, increasingly, relief officials are very worried about the humanitarian situation in Lebanon. We've heard the U.N. emergency relief coordinator, Jan Egeland, saying he wants a 72-hour window to allow civilians to get out of the remote villages and towns in southern Lebanon, to head to safety to the north. And it's a call many of the people here are hoping both sides, Hezbollah and Israel, will respond to it.

(BEGIN VIDEOTAPE) WEDEMAN (voice over): A red cross on a white bed sheet. Staff at Tyre's Najm Hospital hope Israeli jets will see their flag and spare them.

Just a few minute away by car, smoke rises from another airstrike. People head north by whatever means possible.

No one knows how many people are still hunkered down in their homes in southern Lebanon. Hundreds of thousands have already fled north.

UNIDENTIFIED MALE: The situation over there, it's very bad right now. Everything is running out right now. There is nothing there.

No food, no electric, no water, no medicine. Nothing. A lot of old people there, too.

WEDEMAN: Refugees gather at Tyre's rest house hotel, where local relief workers put them on buses to Beirut. They're exhausted, scared, desperate to move on.

Hanan Assi escaped the south with her family and $300 in her pocket. On a borrowed mobile phone she assures a relative everyone is safe.

HANAN ASSI, SOUTH LEBANON RESIDENT: There are still a lot of people there. There are still a lot of people who need help. And everybody -- it's just -- it's terrible. They need some help.

WEDEMAN: The danger of travel by road is everywhere to be seen, and fuel is in short supply because many of the gas stations have been bombed.

(on camera): People who make it this far to the northern edge of Tyre have a good chance of reaching safety, but relief officials are far more concerned about people stuck in remote villages in the far south who just can't get out.

(voice over): The United Nations, the Red Cross and other groups are doing what they can, but in the midst of war their hands are tied.

UNIDENTIFIED MALE: There are people who have been wounded and who have not been evacuated until now. And one other big issue, there are people who have been killed. There are cars with dead bodies aboard. Nobody has been able to get there to get them out and to give theme a decent funeral.

WEDEMAN: So the living take their chances and go.

(END VIDEOTAPE)

WEDEMAN: Wolf, the Red Cross officials I spoke to today say they are extremely concerned about the situation in the south. They point out, for instance, that because the electricity system has been knocked out, water pumps don't work, people are drinking dirty water, disease is spreading. They can't get to those areas. They are really worried that the situation, if it continues as is, going to become even more difficult -- Wolf.

BLITZER: Ben, thank you very much. Ben Wedeman reporting for us.

And coming up, the Syrian connection. Can the U.S. forge a workable peace in the Middle East without talking directly to Damascus? We're going to show you why some experts say no.

Plus, the secretary of state, Condoleezza Rice, coming back here to the Middle East tomorrow. We'll talk about her daunting task and the chances of success. Our John King is here in Jerusalem with me.

Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. I'm Wolf Blitzer, reporting tonight from Jerusalem.

Much more of our coverage on the crisis in the Middle East coming up. I'm also going to take you down to the beaches, the Mediterranean, to see a new potential terror threat facing Israel. We're going to have that exclusive report some new video that's just coming in.

All that coming up.

First, though, let's check in once again with Zain for a quick look at some other important stories making news right now -- Zain.

ZAIN VERJEE, CNN ANCHOR: Wolf, the U.N. Security Council could vote as soon as next week on a resolution requiring Iran to stop enriching uranium or face the threat of sanctions. The council's five permanent members circulated the resolution to the full council today. An earlier draft supported by the U.S., Britain, France, and Germany would have made the sanctions threat immediate. But Russia and China opposed that.

A nearly two-week-long heat wave in California is taking a terrible toll. State emergency officials say there have been 63 confirmed heat-related deaths. Authorities are looking into the deaths of another 53 people believed to be heat-related as well.

Since the 16th of July, high temperatures right across California have topped 100 degrees, but some areas are finally seeing a little cooler weather now.

A DUI charge for Mel Gibson. The L.A. County sheriff's office says the actor and director of "Braveheart" and "Passion of the Christ" was arrested early this morning in Malibu. It says that he was charged with driving under the influence.

Gibson was released on $5,000 bond. Officers on patrol say that he was driving extremely fast. So far, no comment from Gibson himself -- Wolf.

BLITZER: Thank you, Zain.

Coming up, air, land and sea. Does Israel now face some new threats from the Mediterranean? We have some extraordinary video of a would-be water-borne terrorist who was stopped. You're going to want to see this.

And it's a delicate diplomatic dance, talking about a key player without actually talking to that key player. Is that any way to end the conflict?

Stay with us. Much more of our special coverage from right here in the Middle East.

(COMMERCIAL BREAK)

BLITZER: Welcome back.

We're following all the latest developments in the Middle East crisis. Among them, the United Nations emergency relief coordinator is calling for a 72-hour cease-fire to allow humanitarian aid into Lebanon, Israel and Gaza.

Also, Hezbollah has launched its most powerful rockets yet into Israel. They struck the town of Afula, southeast of Haifa.

Meanwhile, Israel says it bombed at least 110 Hezbollah targets overnight.

Amid all of this, the secretary of state, Condoleezza Rice, returning to the Middle East tomorrow to try to work out some sort of diplomatic solution.

And casualties as of right now, Lebanon reporting 398 people dead, with more than 1,600 wounded in Lebanon. Israel says it has lost 51 dead, more than 1,300 Israelis wounded.

The Bush administration says, Syria has armed and aided Hezbollah. But some experts say, the U.S. refusal to talk to Damascus hampers efforts to end the fighting.

CNN's Brian Todd to is in Washington. He's looking at this part of the story -- Brian.

BRIAN TODD, CNN CORRESPONDENT: Wolf, the chorus is growing among people who know this region that Syria is in a unique position to help, and that an opportunity is slipping away.

(BEGIN VIDEOTAPE)

TODD (voice-over): Amid frantic diplomatic efforts to silence these guns, President Bush is asked point-blank about a potentially key player.

QUESTION: When Secretary Rice goes back to the region, will she have any new instructions, such as meeting with Syrians? GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: Her instructions are to work with Israel and Lebanon to get a -- to come up with an acceptable U.N. Security Council resolution that we can table next week.

TODD: A non-answer, consistent with the Bush administration's recent hard line toward Syria, that has led to the withdrawal of the U.S. ambassador in Damascus and an almost grinding halt to any diplomatic contact.

U.S. officials are clear. They don't want to reward Syria for its ties to Hezbollah and Iran, its lack of cooperation with the U.N. probe into the murder of Lebanon's former prime minister, Rafik Hariri, and its alleged harboring of insurgents from Iraq.

But some former diplomats say, in a situation like this, an overture could work.

RICHARD MURPHY, FORMER U.S. AMBASSADOR TO SYRIA: You talk to your critics. You talk to your enemies. It's more use than talking just to one's friends.

TODD: And Syria, according to analysts, is in a unique position to intercede, given its role as a facilitator, a logistics hub between Hezbollah and its patrons in Tehran.

EDWARD LUTTWAK, SENIOR FELLOW, CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES: If they cut off the supply, then Hezbollah has to accept its disarmament, as the United Nations ordered last year. So, the Syrians can do it.

TODD: And they might have motivation. Analysts say, Syria's relationship with Iran and Hezbollah is outdated and has always been more a marriage of convenience than ideology.

COLONEL PATRICK LANG (RET.), MILITARY INTELLIGENCE ANALYST: The Syrians are not really fanatics. They're tribal politicians who want to hang on to their loot. And I believe they would probably make a deal.

(END VIDEOTAPE)

TODD: And what would both sides get out of that deal? The U.S., Israel, and their allies would get a better crack at stability in southern Lebanon and more cooperation from Syria in the war on terror.

Syria gets out of isolation, more economic opportunity. But, right now, most observers believe, with each side so entrenched, an opening with Syria is unlikely -- Wolf.

BLITZER: Brian, thank you -- Brian Todd in Washington.

Meanwhile, President Bush says he's sending the secretary of state back here to the Middle East tomorrow.

Our chief national correspondent, John King, is following all the latest diplomatic developments.

John, she's supposed to have dinner, I take it, tomorrow night here with the prime minister.

JOHN KING, CNN CHIEF NATIONAL CORRESPONDENT: Dinner with Prime Minister Olmert tomorrow night, talks with Lebanese officials, as well.

Then, the expectation, although the State Department won't say so officially just yet, is that she will head back to the states for the big debate at the United Nations. It's a very big challenge for Secretary Rice.

Number one, she has to convince the Israelis that this is a serious plan that will reduce the Hezbollah threat, so that the Israelis take any cease-fire. She has to get the Lebanese government to stand up to Hezbollah, which the government has already said it is too weak to do without international help.

They think they're making progress on the stabilization force. But a key question is, what does Prime Minister Siniora need to go to Hezbollah, and what can Secretary Rice convince Prime Minister Olmert to give up? A prisoner swap is pretty easy. Can they get Israel to give up some disputed land in some deal, if not perhaps on day one, a bit down the road?

So there's some horse-trading to do here. It's a fascinating challenge for Secretary Rice.

BLITZER: Let me follow up on Brian Todd's report on Syria, because it's a fascinating part of this whole story.

I'm told by authoritative Israeli sources here, the Israelis are deeply worried, because, if some sort of mistake on either side, a miscalculation, this war between Israel and Hezbollah could expand to include Syria. And that's one reason why the Israelis -- and maybe the biggest reason the Israelis mobilized those three divisions of reservists, not necessarily worried about Hezbollah.

But, in case there's a miscalculation, they have to fight Syria, they want to be ready. They don't want to be undermanned.

What about -- what are you hearing from the U.S. side about a dialogue, if you will, with Syria?

KING: Well, one of the things the United States will tell Israel is that one way to prevent a miscalculation is to stop the fighting. But Israel's response is, how do you guarantee there's not a resupply of Hezbollah?

And that comes down to the mandate for the international force. They're assembling the troops -- not enough yet. But they think they're making progress there. Where they expect the fight in the Security Council is over the mandate.

The United States and Britain, France even, want an aggressive mandate, want those troops to have not only the authority to engage Hezbollah, if they see militias, if Hezbollah refuses to lay down its arms, even temporarily, but also to patrol the Syrian border, to cut off any resupply, so that, if more missiles, more rockets come across the border, they stop them.

That could lead to a bigger confrontation there. The United States won't talk directly to Syria right now, but you heard Prime Minister Blair today talking about, you have to deal with all of these issues. There -- there will be pressure on the United States to talk to Damascus. In the short term, look for others, including U.N. Secretary-General Kofi Annan, to take up that task.

BLITZER: And one final note -- Israelis have said to me, authoritative Israelis, have suggested that, in the old days, Hafez al-Assad, he was predictable. Everyone knew exactly where he stood.

This younger Bashar al-Assad, he's sort of unpredictable right now. He's not necessarily tested. They don't know how he might react. And there's a lot of nervousness going on right now.

KING: There is a great deal, which is why, as Brian just noted, some think the best calculation for the U.S. would to engage him and go to the most basic instinct of all, self-preservation, and tell him that, if he's cut -- cut off from Iran, he needs to deal with somebody.

But the U.S. just simply won't do that right now. So, it will be at least through a third party in the short term. But, if you get a cease-fire here -- and let's put that in big capital letters -- they have a plan to go to the Security Council. That doesn't mean Israel and Hezbollah accept it.

But if you get a cease-fire here, everyone thinks, for it to be lasting, you do need to broaden it out, go to the bigger picture. And that ultimately involves Syria, and then an even bigger question, Iran.

BLITZER: John, thank you very much.

John's going to be covering this visit here by the secretary of state. She's expected here in Jerusalem tomorrow.

Stay with CNN throughout the weekend for complete coverage of all of these developments in the crisis in the Middle East. We're not going to go away very quickly.

Still to come: a sea change in this war? Let's talk a little bit about the potential of threats coming in from the sea. We have some extraordinary video of some terror threats lurking from the Mediterranean.

And, surely, men and women and children are caught in the crossfire, but there are other casualties as well. We're going to tell you how the fighting is killing off some sea life.

Stay with us. You're in THE SITUATION ROOM. (COMMERCIAL BREAK)

BLITZER: Welcome back. I'm Wolf Blitzer, reporting live from Jerusalem tonight. We will have much more on the crisis in the Middle East.

First, though, let's check back with Zain Verjee. She's in Washington with a closer look at some other important stories making news -- Zain.

VERJEE: Wolf, American Tour de France winner Floyd Landis says that he won that race fairly. He's awaiting results from a second anti-doping test, after an initial one showed elevated levels of testosterone. Landis says he has naturally high amounts of testosterone in his body.

(BEGIN VIDEO CLIP)

FLOYD LANDIS, TOUR DE FRANCE WINNER: I would like to leave absolutely clear that I am not in any doping process. In this particular case, nobody can talk about doping. And, for this reason, I ask all of the media, both in Europe and in the United States, that they know how to interpret and understand where we are.

(END VIDEO CLIP)

VERJEE: You can hear more from Floyd Landis when he talks exclusively to CNN's Larry King tonight. That's at 9:00 p.m. Eastern. You can also e-mail questions to him at CNN.com/larryking.

A federal appeals court has stopped the Justice Department from reviewing evidence seized from a Louisiana congressman's Capitol Hill office. The three-judge panel says Democrat William Jefferson must first be given copies of the documents taken from his office in the raid back in May. Jefferson faces allegations that he accepted a $100,000 bribe and stashed most of the cash in his freezer.

A proposal to raise the minimum wage could come to a vote today or tomorrow in the House. It could also come with some strings attached. House Republican leaders have crafted a plan to raise the minimum wage to $7.25 an hour over the next three years. It's now $5.15 an hour.

But the measure is tied to a renewal of several popular tax breaks. It would be the first hike in the minimum wage in 10 years -- Wolf.

BLITZER: Thank you, Zain.

Let's check in with Ali Velshi. He's standing by in New York with the "Bottom Line" -- Ali.

ALI VELSHI, CNN ANCHOR: Wolf, while those rockets fall around where you are, Americans are witnessing some explosions of their own, financially, here at home. Let me show you a picture of how oil and markets have done in the last year. Rising oil prices haven't actually crippled markets, by any means, but this latest Mideast crisis has set a new record high for oil, not today, a few days ago. But oil traders are worried that Iran could get deeper into the Mideast mess than it already is, and that could mean a real cutback in oil production.

Now, most Americans don't buy crude oil, but they buy gas, and they have been buying it for more than three bucks a gallon, on average, in the last couple of weeks. The bottom line is that the consumer, the investor is going to pay for this war already, not just in gasoline or shipments or air travel, but in inflation weaving its way into everything we -- we buy.

Kellogg's just said today it's raising the price of its cereal by 3 percent. Inflation means that every dollar you spend buys you less. Now, the Federal Reserve has been fighting inflation. They have been raising rates. That makes anyone who borrows money spend less. And that slows down the economy.

Well, the thing, Wolf, is that it has worked. And it has worked perhaps too well. Economic growth is slowing down. But with oil prices at about -- well, over 70 bucks a barrel, inflation isn't dead. Inflation and slowing growth, that's a combination that could trigger a recession.

(STOCK MARKET REPORT)

BLITZER: Ali, thank you very much.

We're live here in Jerusalem, following all the latest developments in the Middle East crisis.

Israel has historically faced threats from three directions, with its back to the Mediterranean. But, as we found out in this exclusive report, there may be some new threats from the sea.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): Take a close look at this extraordinary video provided to CNN by the Israeli navy. A seemingly innocent jet- skier races toward Israeli shores, ignoring repeated orders to stop. As a result, he's shot and killed. A senior Israeli navy officer says the jet-ski was loaded with explosives.

And check out this video. An Israeli naval vessel intercepts this small boat with two men on board. The same Israeli navy officer says, they are suicide bombers. The Israeli sailors survive, but are seriously injured.

Finally, take a look at this deflated raft the Israeli navy comes upon. Israeli sailors open machine gun fire to make sure there's nothing hidden inside. But, under fire, it explodes.

Here's how it looked from a second Israeli camera on shore. (on camera): Most people think of the threats facing Israel coming from the north, whether from Lebanon, or from the east from the West Bank, or from the south from Gaza.

But there's another major threat facing Israel, and that's a threat from right behind me, the Mediterranean Sea.

(voice-over): The senior Israeli navy officer tells CNN, there have been 80 maritime terror plots that Israel has detected over the years. Most have been foiled.

Still, Israel has established an elaborate network of early- warning devices to monitor threats from the sea, including the nightmare of a cargo ship loaded with explosives.

And there's now heightened fear involving the Katyusha rockets that Hezbollah has been firing into northern Israel.

RON BEN-YISHAI, ISRAELI DEFENSE ANALYST: The very same rockets that hit, say, Nahariya these days can be launched from the sea as easy, and even easier, than they are launched from -- from the ground. They have a prolonged-range Katyusha rockets, range of about 30 kilometers, that can be launched from very deep in the sea, way beyond the Israeli territorial water.

KING (on camera): We're here in Ashdod, Israel's major port along the Mediterranean. You can see the facilities right behind me -- waiting off the coast here, right off the beach, a few ships. They're waiting to bring some cargo into Ashdod -- Ashdod, all of a sudden, becoming even more important, now that Haifa, the big port up in the north, has been effectively shut down because of the rockets coming in from Lebanon, from Hezbollah.

If you go down a little bit further, down this beach is Ashkelon, another big Israeli town. That tow, earlier today, saw two Israeli kids who were injured as a result of Palestinian Qassam rockets landing in Ashkelon, landing in a park.

Right down the road, only a few miles down from where I -- I am right now, is Gaza.

(voice-over): The bottom line for Israel, the threats come in all sizes and from all directions.

(END VIDEOTAPE)

BLITZER: Our Internet team is continuing to monitor the Web for all the latest developments from citizen journalists caught up in this war zone.

Let's bring in Jacki Schechner. She's picking up some new details on the humanitarian efforts in Lebanon -- Jacki.

JACKI SCHECHNER, CNN INTERNET REPORTER: Hi, Wolf.

Local Lebanese are now starting to pitch in. We have got Julien, who blogs at BloggingBeirut.com. He documented some local youths in a town called Rmeileh who went out door to door, collecting money. They then made a list of the supplies that they wanted to buy, and they went on a shopping spree. These are four different photos here. Just wanted to show you the magnitude of what we're talking about.

They bought things like tuna, sardines, powdered milk, toilet paper. They say they bought enough supplies to feed 1,200 people for three days. They then went out to Mount Lebanon, an area that is housing a lot of refugees right now. And they distributed the supplies.

Want to just give you an idea of where this area is. It was these three specific towns right here, kind of in the middle of Lebanon. This is courtesy of this travel site here, just to give you an idea of what we're talking about.

Now, the official humanitarian aid still continues. The World Food Program is responsible for distributing aid within Lebanon. And they say they have got two convoys heading out today. One of those convoys is heading to the town of Sidon right here. They say it's about 10 trucks of supplies, medical needs, shelter, things like that.

And then there's another convoy of eight trucks that's heading to Jezzine. And you can see the areas that are much in need. At the same time, the United Nations Refugee Agency is amassing supplies in Syria. And they plan to truck those into Beirut over the next three days -- Wolf.

BLITZER: Jacki, thank you.

Up ahead: victims of the fighting between Israelis and Palestinians you haven't heard about -- could this mean an environmental disaster?

And later, Jack Cafferty asks this question: Is it a mistake for the U.S. and Britain not to push for an immediate cease-fire?

Stay with us. You're in THE SITUATION ROOM.

(COMMERCIAL BREAK)

BLITZER: Let's check in with Lou Dobbs to tell us what's coming up at the top of the hour -- Lou.

LOU DOBBS, CNN ANCHOR: Wolf, thank you.

Coming up at 6:00 p.m. Eastern here, we will have the very latest on Hezbollah's powerful new rockets, as the war between Israel and Hezbollah is escalating.

President Bush, British Prime Minister Tony Blair demanding, Iran and Syria stop supporting Hezbollah -- the Syrian ambassador to the United Nations joins us here tonight.

And a heat wave in California kills more than 100 people. We will have the latest for you there, live from Los Angeles. And the war on the middle-class millions -- middle-class Americans can no longer afford health care, the White House and Congress simply talking about the issue. They're also talking about raising the minimum wage. But they're also talking about cutting taxes for wealthy estates -- all of that, and a great deal more, coming up here at 6:00 Eastern, top of the hour.

Please be with us -- Wolf, back to you.

BLITZER: Thank you very much, Lou. We will be watching.

Seventeen days of fighting here in the Middle East, oil tanks blasted, beaches bombed, all of it may be contributing to a massive environmental disaster in Lebanon.

CNN's Hala Gorani has more from Beirut -- Hala.

HALA GORANI, CNN CORRESPONDENT: Wolf, we have heard a lot about the loss of life and the destruction of infrastructure. But there's another byproduct of this conflict, an environmental crisis in Lebanon.

We visited a Beirut beach a short time ago, and this is what we found.

(BEGIN VIDEOTAPE)

GORANI (voice-over): Ramlet al-Baida literally means white sand. Today, this Beirut beach's name is far from describing the reality on the ground. Israel's strike on a fuel tank at the Jiyeh power plant a few weeks ago caused a 15,000-ton oil spill that has devastated a third of Lebanon's coastline.

UNIDENTIFIED MALE: This is the biggest environmental crisis in the history of Lebanon.

GORANI: Wile Hameidan (ph) is an environmental activist.

UNIDENTIFIED MALE: This is pure oil. And the -- even if it settles on the ground, when the sea gets rough, it can reactivate the oil and throw it back on the beach.

GORANI: The oil is killing fish and birds along the coast. And it is threatening the green turtles. It is now the season for that endangered species to emerge from the sand here and run back to sea. But the oil means, this year, very few of them will survive.

A few months ago, we filmed a story on this beach. It was clean. And, despite the colder weather, families were enjoying picnics on the sand.

(on camera): But, today, Ramlet al-Baida is completely deserted. This time of year, you would have thousands and thousands of beachgoers. The war is keeping people away, of course. But it's also because you just cannot swim in this sludge, and the smell of fuel is overpowering. (voice-over): So, how long will it take to clean up? Lebanon's environment minister says, even though surface cleanup could take a few months, the impact on the environment could be much longer- lasting.

YACOUB AL-SARRAF, LEBANESE ENVIRONMENT MINISTER: The issue is not whether it will look nice again or not and when it -- will it look nice. The issue, when will the equilibrium of life in this part of the world be reestablished? And this takes tens of years.

GORANI: The fire in the depot that caused the oil to leak is still burning. And officials here fear even more fuel could still hit Lebanon's shores.

And experts say, the longer cleanup is delayed by war, the longer it will take the country's environment to recover.

(END VIDEOTAPE)

GORANI: The Kuwaiti government is sending special equipment to Lebanon to help, but the cleanup can only begin in earnest when the war ends -- Wolf.

BLITZER: Hala Gorani in Beirut -- thank you, Hala.

Up next, Jack Cafferty asks: Is it a mistake for the U.S. and Britain not to push for an immediate cease-fire? "The Cafferty File" -- coming up next.

(COMMERCIAL BREAK)

BLITZER: Check back with Jack Cafferty in New York -- Jack.

CAFFERTY: The question this hour, Wolf, is: Is it a mistake for the U.S. and Britain not to be pushing for an immediate cease-fire? A lot of countries in Europe and the Middle East would like to see a halt to the hostilities posthaste.

Ali writes from Michigan: "I believe that this is a huge blunder for the U.S. and Great Britain. They both pushed hard for the Iraq war, and this was an opportunity to show the Middle Eastern people they truly care about their well-being. By not calling for a cease- fire, they are going to further enrage fanatics that want to hate the West."

C.E. writes in Pennsylvania -- Denver, Pennsylvania -- didn't know there was one -- "The less the U.S. and Great Britain get involved, the better. Neither administration has proved to be particularly competent at much of anything. I doubt that Israel gives a rat's behind" -- he didn't use behind -- "about whether -- what any of them -- either of them has to say."

Marg writes: "What a stupid question. Who's supplying Israel with all the military power? Who will be making billions of dollars to rebuild Lebanon? Who will be making more bombs for Israel? Yes, it would be a mistake for the United States to ask for a cease-fire." Jeff writes: "A cease-fire between Israel and Hezbollah now would be considered a victory for Hezbollah. Anyone who favors this is just asking for more terror attacks, kidnappings, and trouble in the Middle East."

Shirley in Illinois: "Bush and Blair want a war with Syria and Iran, at any cost, just to keep the pump prices up and to keep Bush out of hot water for his many failures with both foreign and domestic policy."

Dan in Houston: "Push for a cease-fire with a terrorist organization that has no government, no country? Who negotiates the cease-fire for them? Jack, I thought you could have asked a more intelligent question."

Hey, it's Friday. That's the best I could do.

And J.P. in Arlington: "Who needed a cease-fire? We needed one yesterday. See, the irony is, what they need to do is get the U.S. to get Israel to stop doing this 'blank,' and it's over, or at least it's a start."

If you didn't see your e-mail here, go to CNN.com/CaffertyFile, and you can read some more of these online -- Wolf.

BLITZER: Jack, see you in an hour. Thanks very much.

And, to our viewers, remember, we're here in THE SITUATION ROOM weekday afternoons, 4:00 to 6:00 p.m. Eastern -- back for another -- another hour at 7:00 p.m. Eastern.

Until then, thanks very much for joining us. I'm Wolf Blitzer in Jerusalem.

"LOU DOBBS TONIGHT" starts right now -- Lou.

DOBBS: Wolf, thank you.

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