TEL AVIV — The fragile Israeli-Hezbollah ceasefire that went into effect in the predawn hours of Wednesday appeared to be holding on its third day, despite several reported violations by Hezbollah, but Israel cautions that it remains early days. 

The US-mediated deal calls for a 60-day cessation of hostilities during which Hezbollah fighter are to retreat to the northern bank of the Litani River while Israeli troops withdraw from southern Lebanon and back into Israel. The Lebanese army will redeploy in the south, with a US-led control mechanism observing that the sides adhere to the agreement.

"We must not rest on our laurels or be complacent," a senior Israeli military source told Al-Monitor on condition of anonymity. "It's not over yet, and it's not behind us yet. It is clear to us that Hezbollah will try to test and violate the agreement. At first slowly, then with real steps. They will challenge us. We will have to act immediately, strongly and aggressively. They will have to pay an immediate price for every violation."

The senior military source also addressed questions about the agreement's control mechanisms as well as reports spread by associates of Prime Minister Benjamin Netanyahu that the United States intends to build a military base in Lebanon to help enforce the arrangement.