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Exchange of fire with Iran-backed militant group Hizbollah is biggest since war in 2006

Military unleashes deep incursion into neighbouring country to target Iran-backed militant group

Move comes amid suggestions of possible ground offensive and first air strike on capital since 2006

Palestinian militant group’s assault sparked war in Gaza that has spread across the Middle East

Plus, earnings season steps up a gear as Wall Street banks report, Nobel Prizes are announced and Tesla launches Robotaxi

Foreign minister offers postponement of attack on Rafah if Hamas agrees deal on captives

Recent demands from Benjamin Netanyahu could scupper attempts to bring war in Gaza to a halt

Diplomats press for deal that would include release of hostages before Donald Trump takes office in US

Governor urges government to start budget tightening this year to pay for cost of war

The longer-term goal should be to stabilise Gaza and prevent the violence flaring into regional conflict