Hezbollah confirms leader Nasrallah is killed after Israeli strike

• Hezbollah confirms leader Nasrallah is dead
• Israel said it eliminated him in Beirut airstrike on Friday
• Death marks major blow to Iran and its allies

Hezbollah leader Sayyed Hassan Nasrallah has been killed, the Iran-backed group said on Saturday, confirming his death after the Israeli military said it had eliminated him in an airstrike in Beirut the day before.

His death marks a devastating blow to Hezbollah, as it reels from an intense campaign of Israeli attacks. It is also a huge blow to Iran, removing an influential ally who helped build Hezbollah into the linchpin of Tehran's constellation of allied groups in the Arab world.

Hezbollah said in a statement that it would continue its battle against Israel "in support of Gaza and Palestine, and in defence of Lebanon and its steadfast and honourable people".

It did not say how Nasrallah was killed.

Hezbollah's Al-Manar TV started airing Koran verses after his death was announced.

The Israeli military said earlier that Nasrallah was eliminated in a "targeted strike" on Friday on the group's underground headquarters beneath a residential building in Dahiyeh - a Hezbollah-controlled southern suburb of Beirut.

It said he was killed along with another top Hezbollah leader, Ali Karaki, and other commanders.

"The strike was conducted while Hezbollah's senior chain of command were operating from the headquarters and advancing terrorist activities against the citizens of the State of Israel," it said.

Nasrallah's death is by far the most significant blow in a devastating fortnight for Hezbollah during which it suffered a deadly attack on thousands of wireless communciations devices used by its members. Israel also stepped up airstrikes that have killed several commanders and hit areas across much of Lebanon.

Friday's airstrike on Dahiyeh shook Beirut. A security source in Lebanon said the attack - a quick succession of massively powerful blasts - had left a crater at least 20 metres deep.

It was followed on Saturday by further airstrikes on Dahiyeh and other parts of Lebanon. Huge explosions lit up the night sky, and more strikes hit the area in the morning. Smoke rose over the city.

Hezbollah also continued its cross-border rocket fire, setting off sirens and sending residents running for shelter deep inside Israel. Israeli missile defences blocked some of them and there was no immediate report of injuries.

The escalation has increased fears the conflict could spin out of control, potentially drawing in Iran, Hezbollah's principal backer, as well as the United States.

Residents have fled Dahiyeh, seeking shelter in downtown Beirut and other parts of the city.

"Yesterday's strikes were unbelievable. We had fled before and then went back to our homes, but then the bombing got more and more intense, so we came here, waiting for Netanyahu to stop the bombing," said Dalal Daher, speaking near Beirut's Martyrs Square, refering to Israeli Prime Minister Benjamin Netanyahu.

- Reuters