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Israeli intelligence said the Palestinian gunman had been accidentally shot by his friend as they killed the Israelis in Thursday's drive-by shooting, prompting them to flee the scene and likely saving the lives of the four children in the back seat.

Israel demolishes militants' homes amid unrest in West Bank →

But Israeli intelligence says Hezbollah men operate freely, generally unarmed and in civilian clothes.

For Israel, a rearmed Hezbollah in Lebanon is top concern →