BEIRUT, Lebanon (AP) -- Pitched battles raged between Israeli forces and Hezbollah fighters on the border Thursday, and Israel warned hundreds of thousands of people to flee southern Lebanon ''immediately,'' preparing for a likely ground offensive to set up a buffer zone.
U.N. chief Kofi Annan warned of a humanitarian crisis in Lebanon and called for an immediate cease-fire, even as he admitted ''serious obstacles'' stand in the way of even easing the violence. Annan denounced Israel for ''excessive use of force'' and Hezbollah for holding ''an entire nation hostage'' with its rocket attacks and snatching of two Israeli soldiers last week.
As the death toll rose to 330 in Lebanon as well as at least 31 Israelis, Lebanese streamed north into the capital and other regions, crowding into schools, relatives' homes or hotels. Taxi drivers in the south were charging up to $400 per person for rides to Beirut -- more than 40 times the usual price. In remote villages of the south, cut off by strikes, residents made their way out over the mountains by foot.
The price of food, medical supplies and gasoline rose by as much as 500 percent in parts of Lebanon on Thursday as Israel's relentless bombardment destroyed roads, bridges and other supply routes. The World Food Program said estimates of basic food supplies ranged from one to three months...
http://www.nytimes.com/aponline/world/AP-Lebanon-Israel.html