Hezbollah Raid Boosts Group's Image

A burned Israeli humvee that was part of a convoy attacked by Hezbollah guerillas where two Israeli soldiers were captured, is seen on a road between Zarit and Shtula in northern Israel, on the border with Lebanon, Wednesday, July 12, 2006. Hezbollah fighters launched a raid into Israel and captured two Israeli soldiers Wednesday, triggering an Israeli assault with warplanes, gunboats and ground troops in southern Lebanon to hunt for the captives. Seven Israeli soldiers and two Lebanese were killed in the violence. (AP Photo/Omer Messinger) (Omer Messinger - AP)

Israeli holds an estimated 9,000 Palestinian prisoners.

Nasrallah said he was open to a package deal in which the two Israeli soldiers along with the third held by the Palestinians would be traded for Arab prisoners beyond just the three Lebanese.

"If we have in our hands prisoners and can win the release of Lebanese, Palestinian, Syrian, Jordanian and Arab prisoners ... but we say 'No, we just want Lebanese,' then this is inhumane," he said.

But beyond the issue of a prisoner swap, the operation Wednesday shows both Syria and Iran, through their support of Hezbollah, still have major cards to play to pressure the United States and the West.

It comes at a time when both of Hezbollah's main patrons are at loggerheads with the international community. Iran has been locked in a dispute with the West over its nuclear program, which the United States, Israel and the European Union all suspect is aimed at developing weapons.

Syria has clashed with the West over its support for Palestinian militants _ including the sheltering of Hamas leader Khaled Mashaal _ as well as its suspected role in the assassination of former Lebanese prime minister Rafik Hariri. The U.S. also accuses Damascus of doing too little to prevent insurgents crossing its border into Iraq to fight a U.S.-led coalition.

The White House blamed Syria and Iran for the kidnapping of the two Israeli soldiers, though Syrian Vice President Farouk al-Sharaa denied any role.

Analysts said the Hezbollah operation could not be separated from events in Gaza, Syria and Iran. "It relieves Hamas of some of the pressure and aims at establishing a new balance of power in the region, a strategic balance of terror," said Bechara Charbel, editor in chief of Lebanon's Al-Balad daily.

The move risks deepening divisions within the Arab world. Egyptian President Hosni Mubarak, a top U.S. ally, expressed impatience with Syria on Wednesday, implicitly accusing it of scuttling his efforts to win the release of the Israeli held by the Palestinians.

And within Lebanon, there are dangerous fault lines. Lebanese leaders have been split over international pressure to disarm Hezbollah, though so far they have rejected such a move. The Lebanese government, which includes two Hezbollah ministers but is dominated by anti-Syrians, distanced itself from the operation and rejected blame for the soldiers' kidnapping.