Top Israeli Cabinet ministers on Thursday decided not to expand the country's Lebanon offensive,
Israel Radio reported. But they approved calling up three additional divisions of reserve soldiers. Meanwhile, a Hezbollah rocket hit a chemical plant in the northern Israeli town of Kiryat Shemona, security officials said. [AP]

Israeli Prime Minister Ehud Olmert believes that the goal of the Israeli offensive have been met. Meanwhile Hezbollah rockets continue to rain down on Northern Israel, this indicates that the offensive has not been a success. Maybe if they would have targeted Hezbollah targets and not civilian infrastructure (the infrastructure that offered no strategic benefit to Hezbollah agents) they would have stopped the rocketing of Israeli territory.

More on what the US and Israel may have to concede.

[UPDATE] At Pat Lang's blog, Richard Sale writing about how this fiasco will affect Israeli security.

The destruction of Lebanon's infrastructure has incredibly damaged the
image of the United States in the Arab world. In fact, the popular hatred
of the United States in such moderate Arab countries such as Egypt and Jordan
resulted in the leaders of those countries informing Condi Rice that she
was not welcome there, which was why the summit took place in Rome.