An Israeli air strike on Monday seriously wounded a local Hezbollah official in his car in Lebanon's south, a Lebanese security source told AFP.

Lebanese movement Hezbollah also said four of its fighters were killed in an Israeli strike.

Israeli forces and Hezbollah, a Hamas ally, have traded near-daily fire since war broke out on October 7 between Israel and the Palestinian militant group in the Gaza Strip.

In the past few days, a series of Israeli strikes has injured officials from Lebanese and Palestinian armed groups in southern Lebanon.

Majed al-Afifi was just 40 days old when he was killed, his uncle told AFP in Rafah where Israeli forces bombed multiple homes while rescuing two Gaza hostages.

"We heard the bombing without warning," said Said al-Hams, 26, in Rafah refugee camp.

His nephew, a twin, "was born exactly 40 days ago and was killed", while their mother was wounded.

The newborn is among around 100 people killed by Israeli forces overnight in Rafah, according to the health ministry in Gaza.

There were hugs and tears at Israel's largest hospital on Monday as two Gaza hostages were reunited with their families after being rescued in a deadly military raid.

Luis Har, 70, and Fernando Simon Marman, 60, embraced relatives at Sheba hospital after being airlifted from Gaza's southern city of Rafah.

AFP journalists in Gaza saw the bodies of some of around 100 Palestinians killed in air strikes accompanying the rescue operation, according to a toll from the health ministry in the Hamas-run territory.

The Netherlands must stop delivering parts for F-35 fighter jets used by Israel in the Gaza Strip, after a Dutch court Monday ruled there was a "clear risk" the planes would be involved in breaking international humanitarian law.

The Appeals Court in The Hague sided with a group of human rights organisations that argued the parts contributed to violations of law by Israel in its war with Hamas.

"The court therefore orders the State to put an end to the further export of F-35 parts to Israel within 7 days," said the ruling.

Israelis welcomed the rescue Monday of two Gaza hostages, while fears of a looming ground incursion grew among more than a million Palestinians trapped in the war-ravaged territory's densely crowded far south.

Israel's top ally the United States said it would "not support a full-scale military operation" without protections for civilians in Rafah city, where Israeli forces freed the captives in a dramatic overnight raid.

A Saudi dissident who has unsuccessfully sought asylum in Bulgaria told AFP Sunday he received a deportation order and now fears he could be sent back to the Gulf kingdom any day.

"A deportation order was issued to me before my asylum case was even concluded," Abd al-Rahman al-Khalidi told AFP from his detention cell in Sofia, specifying he had been notified of the order on February 7.

Iran marked 45 years since its Islamic revolution with a ceremony Sunday in which President Ebrahim Raisi condemned arch foe Israel over the Gaza war and demanded it be expelled from the United Nations.

Since Iran's 1979 revolution that overthrew the US-backed Shah Mohammad Reza Pahlavi, the region's main Shiite Muslim power has had deeply hostile relations with Israel, the United States and Britain.

The Israel-Hamas war has devastated the economies of both the embattled Gaza Strip and the occupied West Bank, the International Monetary Fund's chief said Sunday, adding that only "durable peace" would improve the outlook.

"The Palestinian economy's dire outlook is worsening as the conflict persists," managing director Kristalina Georgieva told the World Governments Summit in Dubai.

"Only a durable peace and political solution will fundamentally change it".

"Economically, the impact of the conflict has been devastating," Georgieva said.

The International Maritime Organization (IMO) is working "tirelessly" to solve the Red Sea crisis, which is severely disrupting the global transport of goods, its head Arsenio Dominguez told AFP.

Yemen's Huthi rebels, supported by Iran, have launched dozens of attacks against ships in the Red Sea since November, targeting boats headed for Israel in an act of "solidarity" with inhabitants of the Gaza Strip, which is in the grip of the war between Israel and Hamas.

Hamas warned Israel on Sunday that a ground offensive in Rafah, crowded with displaced Gazans, would imperil future hostage releases, while US President Joe Biden urged the protection of civilians in the besieged territory.

Foreign governments, including Israel's key ally the United States, and aid groups have voiced deep concern over Israeli Prime Minister Benjamin Netanyahu's vow to extend operations into the far-southern Gaza city.