Israel and Lebanon's Hezbollah on Sunday engaged in their most intense exchange of fire after months of strikes and counterstrikes, raising concerns of a full-scale war that could potentially involve the United States, Iran and militant groups throughout the region.

By mid-morning, it appeared the exchange of fire had ceased, with both sides asserting they had only targeted military positions. Lebanese authorities reported the Israeli strikes resulted in the deaths of three individuals, while there were no reports of casualties on the Israeli side. The situation remained tense.

Here's a look at where things stand:

Israel states that approximately 100 warplanes carried out airstrikes targeting thousands of rocket launchers across southern Lebanon to preempt an imminent Hezbollah attack. Hezbollah then declared it had launched hundreds of rockets and drones aimed at military bases and missile defense positions in northern Israel and the Israeli-occupied Golan Heights.

Hezbollah termed the attack an initial response to the targeted killing of one of its founding members and top commanders, Fouad Shukur , in an Israeli airstrike in Beirut last month. It stated that the first phase of the attack, which would enable it to launch assaults deeper into Israel, had been completed. It also asserted that its military operations on Sunday had concluded. It denied Israel's claims of having thwarted the attack.

At least three individuals were killed, including a fighter with the Hezbollah-allied Amal group, and two were wounded in the strikes on Lebanon. Lt. Col. Nadav Shoshani, an Israeli military spokesman, stated that an initial assessment indicated “very little damage” in Israel.

The recent gunfire exchange has not resulted in the widely anticipated war, but tensions continue to run high.

Hezbollah launched a barrage of rockets and drones against Israel shortly after the outbreak of the conflict in Gaza , which was initiated by Hamas' surprise incursion into Israel on Oct. 7. Hezbollah and Hamas, both backed by Iran, are allies, and Hezbollah has framed the attacks as a show of solidarity with the Palestinians. Israel has retaliated with airstrikes, and the near-daily exchanges have intensified in recent months.

Over 500 individuals have been killed in Lebanon by Israeli strikes since Oct. 8, a majority of whom were Hezbollah and other armed group fighters, but also over 100 civilians and noncombatants. In northern Israel, 23 soldiers and 26 civilians have been killed by strikes from Lebanon. Tens of thousands of people have been displaced on both sides of the volatile border.

Israel has pledged to restore calm to the border to allow its citizens to return to their homes. While preferring a diplomatic resolution through U.S. and other intermediaries, Israel has stated it will use force if necessary. Hezbollah officials have asserted the group does not seek a broader war, but is prepared for one.

Both sides have thus far exercised caution to avoid actions that could trigger an all-out war, and they may de-escalate after Sunday's exchange.

Israel and Hezbollah engaged in a month-long war in 2006, culminating in a stalemate. The conflict left much of southern Beirut and southern Lebanon in ruins, and displaced hundreds of thousands of people from their homes on both sides.

The anticipation is palpable, as many believe the next war will be significantly more devastating .

Hezbollah's arsenal boasts an estimated 150,000 rockets, capable of striking any part of Israel. Their capabilities have expanded to include an increasingly sophisticated fleet of drones and experiments with precision-guided missiles. A full-scale conflict could displace hundreds of thousands of Israelis, cripple the Israeli economy, and force the army, currently engaged in Gaza, to fight on two fronts.

Israel has vowed a forceful response to any major Hezbollah attack, which would likely inflict severe damage on Lebanon's civilian infrastructure and economy, already plagued by a multi-year crisis. Beirut's southern suburbs, along with towns and villages across southern Lebanon, home to Hezbollah's strongholds, would face significant destruction.

An Israeli ground invasion aimed at eliminating Hezbollah could potentially extend for years. This militant group is vastly more advanced and better-equipped than Hamas in Gaza, which continues to resist after 10 months of intensive Israeli bombardment and ground operations.

An all-out war between Israel and Hezbollah has the potential to escalate into a regional conflict.

Iran is a key supporter of Hezbollah, Hamas and other militant groups in Syria, Iraq, and Yemen . Iran has pledged to retaliate for the killing of Hamas' top leader, Ismail Haniyeh , in an explosion in its capital last month widely attributed to Israel. Israel has neither confirmed nor denied its involvement.

Iran-backed militias across the region have consistently targeted Israeli, U.S., and international interests since the beginning of the Gaza conflict, and might intensify these attacks to relieve pressure on Hezbollah.

Meanwhile, the United States has vowed unwavering support for Israel and has deployed a vast array of military assets, including the USS Abraham Lincoln carrier strike group , to the region in recent weeks to deter any potential retaliatory actions by Iran or Hezbollah.

A U.S.-led coalition assisted in intercepting hundreds of missiles and drones launched by Iran towards Israel in April in response to an apparent Israeli strike in Syria that resulted in the deaths of two Iranian generals. Both sides downplayed an apparent Israeli counterstrike on Iran , and tensions eventually subsided.

The United States, Egypt, and Qatar have been working for months to negotiate a cease-fire agreement in Gaza and the release of numerous hostages held by Hamas. These efforts have intensified in recent weeks , as diplomats see such a deal as the best chance to reduce regional tensions.

Hezbollah has stated that it will cease its attacks along the border if there is a cease-fire in Gaza. It is unclear whether Hezbollah or Iran would halt or reduce their threatened retaliatory strikes over the deaths of Shukur and Haniyeh, but neither group wants to be seen as obstructing any cease-fire agreement.

Despite the vigorous diplomatic efforts, significant differences remain, including Israel's demand for a permanent presence along two strategic routes in Gaza , a demand rejected by Hamas and Egypt. High-level talks are scheduled in Egypt on Sunday.