MAJIDIYA, Lebanon (AFP) ― Prime Minister Benjamin Netanyahu warned Lebanon’s Hezbollah it will pay the “full price” after missiles killed two Israeli soldiers Wednesday in an attack that raised fears of another all-out war.

A Spanish U.N. peacekeeper was killed as Israel and Hezbollah exchanged artillery fire ― the most serious clashes between the bitter enemies in years ― following the attack by the Shiite militant group.

“Those behind today’s attack will pay the full price,” Netanyahu’s office quoted him as saying at a meeting with Israeli’s top security brass Wednesday evening.

EU foreign affairs chief Federica Mogherini appealed for an “immediate cessation of hostilities” as the U.N. Security Council called an emergency meeting from 2100 GMT to discuss the flare-up.

The two soldiers were killed when Hezbollah fired an antitank missile at a military convoy in an Israeli-occupied border area, the army said.

Seven other soldiers were wounded, but none were reported to have suffered life-threatening injuries.

Israel responded with “combined aerial and ground strikes” on southern Lebanon after the attack ― an apparent retaliation for a recent Israeli strike on the Golan Heights that killed senior Hezbollah members.

Lebanese security sources told AFP that Israeli forces had hit several villages along the border.

Clouds of smoke could be seen rising from Majidiya village, one of the hardest hit. There was no immediate information on casualties.

A 36-year-old Spanish corporal from the U.N. peacekeeping force in southern Lebanon was killed in the exchange of fire, officials said.

It said the precise cause of the peacekeeper’s death was “as yet undetermined” and urged all sides to show “maximum restraint to prevent an escalation.”

Hezbollah said it had targeted an Israeli military convoy “transporting several Zionist soldiers and officers.”

“There were several casualties in the enemy’s ranks,” Hezbollah said.

Israel said mortar fire was also aimed across the border at several military facilities. There were no casualties.

Hardline Foreign Minister Avigdor Lieberman said Israel should respond to the attack “in a very harsh and disproportionate manner, as China or the U.S. would respond to similar incidents.”

Army spokesman Brigadier Gen. Moti Almoz warned Israel was considering further action.

“This is not necessarily the last response,” he wrote on Twitter.

Hezbollah’s attack was hailed by the Palestinian Islamist groups Hamas and Islamic Jihad.

“We affirm Hezbollah’s right to respond to the Israeli occupation,” Hamas spokesman Sami Abu Zuhri said, while Jihad’s Quds Brigade praised the attack as “heroic.”

Israeli security sources said at least one house had been hit in the divided village of Ghajar, which straddles the border between Israel and Lebanon.