Two Israeli soldiers was killed and six wounded (one later died of wounds) when a 20 man Israeli patrol in south Lebanon was ambushed by Hezbollah fighters. Hezbollah took credit for this ambush, saying it was retaliation for the killing of their senior commander Al Haj Ali Daher in Sidon.

August 16; Hamas announced that the car explosion in Hebron was not there doing, but was a plot by the Palestinian Authority to provide an excuse to arrest more Hamas members. The Palestinian Authority has been arresting more known Hamas terrorists of late, because of the progress being made in peace talks with the Israeli government. Ten Hamas members have been arrested since the explosion. Israeli aircraft and helicopters fired fifteen missiles and dropped four bombs on suspected terrorist bases in south Lebanon. This was in response to an attack on Israeli positions in their south Lebanon security zone. Senior Hezbollah commander Al Haj Ali Daher (Abu Hassan) was when two roadside bombs exploded as his car was stuck in traffic near the Lebanese town of Sidon during the evening rush hour. While many suspect it was an Israeli operation, it was also possible that other Lebanon based terrorist groups were responsible. Hezbollah has been feuding with some of these groups lately, and anonymous assassinations are a favorite form of combat in such situations.