U.S. preparing plan for temporary Israel-Hezbollah ceasefire

The Biden administration is working on a new diplomatic initiative for a "pause" in the fighting in Lebanon and a resumption of negotiations on a Gaza hostage and ceasefire deal, according to two U.S. officials, one Israeli official and two sources with direct knowledge.

Why it matters: The White House initiative could be announced as early as Wednesday in an attempt to halt the escalation between Israel and Hezbollah.

Behind the scenes: Discussions of the new initiative started after a phone call last Monday between White House national security adviser Jake Sullivan and Israeli minister of strategic affairs Ron Dermer, U.S. and Israeli officials said.

• Over the last two days, the U.S. has been discussing the idea with France, Israel, Lebanon and several other Arab countries, a U.S. official and a European diplomat said.
• "We are working with several countries on a proposal for a diplomatic solution for the north," a U.S. confirmed.
• "Netanyahu gave a green light to discuss this initiative," an Israeli official said.

Breaking it down: The aim is to achieve a pause that will give space for negotiations on a broader diplomatic deal to prevent a wider war, allow displaced civilians to return to their homes on both sides of the border, and provide renewed momentum for a Gaza ceasefire and hostage deal, a source with direct knowledge of the plans told Axios.

• "If Hamas sees that Hezbollah gives a chance for a diplomatic solution it could encourage [Hamas] leader Yahya Sinwar to move towards a deal," the source said.
• White House deputy national security adviser Jon Finer said at an Axios event on Tuesday that the Biden administration sees a path to de-escalating the situation on the Israel-Lebanon border.
• "We are working on it in real time in New York and in capitals around the world," Finer said.
• The speaker of the Lebanese parliament, Nabih Berri, said on Wednesday that the next 24 hour will be "crucial" for the diplomatic efforts to avoid further escalation.
• The White House didn't respond to questions about the new initiative.

Driving the news: On Wednesday morning local time, Hezbollah fired a surface-to-surface missile at Tel Aviv — the longest-range attack the militant group has attempted on Israel.

• Hezbollah said the target was Mossad headquarters, and the attack was a retaliation for the Israeli pager and walkie-talkie attacks.
• Air raid sirens went off all across the Tel Aviv area, but the missile was intercepted.

The Israel Defense Forces said it conducted wide-ranging strikes on Wednesday against Hezbollah targets across Lebanon.

• The IDF also mobilized two reserve infantry brigades to boost forces on the border with Lebanon. The commander of the IDF northern command said Wednesday that the next phase in the war could be an Israeli ground invasion.
• The Israeli security cabinet will convene on Wednesday evening to discuss the next steps.
• Lebanese Prime Minister Najib Mikati arrived in New York on Tuesday night for the UN General Assembly, and Israel Prime Minister Benjamin Netanyahu is expected to arrive on Thursday.