Israel-Gaza-Lebanon live updates: Hezbollah confirms top commander killed

Danny Danon, Israel's permanent representative to the United Nations, told reporters on Wednesday that his nation would "prefer a diplomatic solution" to its unfolding conflict with Hezbollah in Lebanon, but that "if it fails to return our residents to their homes, then we will use all means at our disposal."

"We are entirely focused on achieving our objectives, which in the north is the return of our displaced citizens who have become refugees in their own country," Dannon said.

"Do not mistake a peaceful nation for a defenseless one. We have the means, we have the capabilities to achieve this goal."

Danon again expressed that Israel was "open to ideas" to avoid a full-scale war.

"But you know, we are very honest about it. Our goal is to push Hezbollah from the fence, allow the residents to come back to the communities, and I hope we'll be able to achieve it without using our military capabilities," he said.

Israel is already conducting an extensive airstrike campaign across southern Lebanon and the Bekaa Valley, as well as limited airstrikes in the capital Beirut and elsewhere.

Israeli actions have killed more than 650 people -- including at least 50 children -- and wounded more than 1,700 others since Monday, according to Lebanese authorities.

Danon declined to weigh in on whether progress had been made towards a pause, but said negotiators "know exactly what we expect."

-ABC News' Shannon Kingston

Iran "will not remain indifferent in case of a full-scale war in Lebanon," Iranian Foreign Minister Abbas Araghchi told reporters Wednesday on the sidelines of the United Nations General Assembly in New York City.

Araghchi also warned that Israel's "crimes will not go unpunished," and said the Middle East region "risks full-scale conflict" if the U.N. Security Council does not "act now to halt Israel's war and enforce an immediate ceasefire."

"The path to de-escalation is clear," Araghchi said. "Israel must immediately stop its attacks on Gaza and Lebanon. Without a ceasefire in Gaza, there will be no guarantee of peace in the region."

"The Security Council must act now to halt Israel's war and enforce an immediate ceasefire, and by that, to save innocent lives. If not, the region risks full-scale conflict and history will hold Israel's enablers, especially the United States, responsible."

"Iran will not remain indifferent in case of a full-scale war in Lebanon," the diplomat added. "We stand with the people of Lebanon with all means."

-ABC News' Ellie Kaufman

On Wednesday, at least 81 people were killed and 403 were wounded in Israeli strikes on Lebanon, according to the Lebanese Ministry of Public Health.

In total, more than 650 people -- including at least 50 children -- have been killed and over 1,700 others injured since Monday, according to the ministry.

The U.S. is currently "in active discussions" with Israel and other countries to try to secure a cease-fire between Israel and Hezbollah, according to a U.S. official.

The Biden administration has floated at least one draft proposal aimed at temporarily halting the conflict, but Israel has signaled it intends to move forward with battle plans aimed at ending months of tit-for-tat exchanges with Hezbollah across its northern border by decimating the militant group, two officials told ABC News.

Negotiations are still ongoing, but at this hour officials said they are growing increasingly resigned to full-blown warfare on a second front in the Middle East.

The U.S. also has little leverage over Hezbollah, so it’s unclear whether the group would abide by any such agreement to pause the fighting, officials said.

The administration could potentially rely on partners with direct ties to Hezbollah to contain the group, but all of its efforts to halt its attacks on Israel over the last year have been unsuccessful, officials said.

The U.S. is still pursuing "concrete options" for de-escalation, and Israel’s ambassador to the United Nations said on Tuesday that Israeli leadership remained "open-minded," officials said.

The Biden administration is also still fervently focused on keeping Iran -- a chief military and financial supporter of Hezbollah -- on the sidelines through indirect diplomacy. Multiple conversations between countries that communicate directly with Iran are taking place on the sidelines of United Nations General Assembly, officials said.

-ABC News' Shannon K. Kingston and Michelle Stoddart