Israeli Prime Minister Benjamin Netanyahu on Monday (Jul 29) vowed a "severe" response to a deadly strike that killed youths in the annexed Golan Heights, as diplomats raced to contain escalation between Israel and Hezbollah.

On a visit to the site of the rocket strike which killed 12 children in the town of Majdal Shams, Netanyahu said: "The State of Israel will not, and cannot, let this pass. Our response will come and it will be severe."

He was greeted by protests during the visit, which came after mourners gathered in the Druze Arab town to bury the last victim, 11-year-old Guevara Ibrahim.

Israel and the United States have blamed the strike on Lebanon's Iran-backed Hezbollah movement, which has traded near-daily fire with Israeli forces since war in Gaza began between Hamas militants and Israel in early October.

Lebanese Foreign Minister Abdallah Bou Habib said a flurry of diplomatic activity has sought to contain the anticipated Israeli response.

"Israel will escalate in a limited way and Hezbollah will respond in a limited way ... These are the assurances we've received," Bou Habib said in an interview with local broadcaster Al-Jadeed.

Several analysts told AFP that this was likely to be the case, with Israel wary of having to fight wars on two fronts.

The United States, France and others were trying to contain the escalation, Habib added, while Lebanese Prime Minister Najib Mikati said "talks are ongoing with international, European and Arab sides to protect Lebanon and ward off dangers".

On Monday White House National Security Council spokesman John Kirby said he was "confident" a broader war could be avoided.

Iran's new President Masoud Pezeshkian, whose country supports Hezbollah and Hamas, warned Israel against attacking Lebanon, which he said would be "a great mistake with heavy consequences".

Pezeshkian spoke with French President Emmanuel Macron on Monday, with the Elysee Palace saying Macron told his counterpart "all must be done to avoid a military escalation" and urged Tehran to "cease its support for destabilising actors".

Hezbollah has denied responsibility for the Majdal Shams rocket attack, though the group claimed multiple strikes on Israeli military positions that day.

Israel said Hezbollah fired a Falaq-1 Iranian rocket. This type of projectile is unguided and an analyst called them inaccurate weapons.