Middle East crisis deepens

Israel and Lebanon are on the verge of all-out war as tit for tat rocket attacks are launched from each side over their shared border, hitting major infrastructure and towns in both countries. As the violence continues, there is a risk Lebanese militant group Hezbollah or Israel will escalate the conflict. Worse, is the dangerous threat of Hezbollah supporter Iran, which has a new stage to confront Israel and its allies on, with its growing arsenal of weapons. World leaders ended their summit on Monday still divided as what the international community can do to help defuse the war. Meanwhile, world markets are getting jitters while watching the price of oil climb towards $US100 a barrel, potentially forcing interest rates higher in major markets, causing inflationary pressure and dampening global economic growth. Motorists have been warned petrol prices could hit $1.70 a litre in Australia.

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