What happens next?

These are answers to some questions on what Israel's bombing of the Lebanese village of Qana will mean for prospects of war and peace in the Middle East.

Why is this attack so significant?

The death of so many civilians and children in the bloodiest single attack of the war has focused growing international opposition to an Israeli offensive against Hizbollah that had already killed hundreds of people.

Israel's comment that rockets were fired into Israel from Qana has made little difference.

The attack was a particular embarrassment for Israel and its US ally as Secretary of State Condoleezza Rice was trying to broker a deal on an intervention force and eventual ceasefire. It led to the cancellation of Ms Rice's planned trip to Beirut.

Qana has additional symbolism as scene of a similar attack in 1996, when shells the army said were aimed at Hizbollah struck a UN camp and killed over 100 civilians - a factor in prompting Israel to end its then "Grapes of Wrath" offensive.

What will Israel do this time?

Israel has said it was sorry for the deaths at Qana and will investigate what happened, but has vowed to continue the offensive despite the outcry from almost all parts of the world bar Washington.

Israel will try to avoid any recurrence, knowing that international pressure may compel it to halt at some stage, but believes it cannot stop the offensive without coming closer to meeting its goals.

Israel's onslaught failed until now to drive Hizbollah far from the border - where its abduction of two soldiers on July 12 triggered the conflict - or stop daily Hizbollah rocket attacks on Israeli cities.

Many in Israel see the battle not only as against Hizbollah, which advocates the destruction of the Jewish state, but one which sends a message to other enemies such as Hizbollah's supporters in Iran and Syria as well as Palestinian militants.

What about Hizbollah?

Hizbollah has vowed retaliation for Qana and has always kept its word when it comes to carrying out attacks.

What Hizbollah could do is use bigger, longer range rockets than it has so far to strike cities deeper within Israel. That would certainly bring a harsher Israeli response and possibly a major ground offensive. Such an outcome might suit Hizbollah in that it would like to drag Israel into a guerilla conflict.

Palestinian militant factions also pledged revenge, meaning Israeli forces will be further tied down trying to stop suicide bombers. The army said it caught two would-be bombers yesterday.

The attack on Qana serves Hizbollah politically in that it rallies fury against Israel both at home and abroad, increasing pressure for a ceasefire. At this point, Hizbollah would certainly claim a truce as a victory.

Israel accuses Hizbollah of launching attacks from civilian areas in the knowledge that civilian casualties will only strengthen its own hand and reflect badly on Israel.

Where does this leave diplomacy?

Badly stuck for now. The cancellation of Ms Rice's trip to Beirut knocked previous hopes that it was a matter of days before agreement could be reached on an international force for south Lebanon and a ceasefire.

The failure of Ms Rice's visit was underscored by her early planned return to Washington - now set for today.

The aim is to keep on working to draw up a UN resolution that could provide for the eventual force and a ceasefire, but neither is likely to actually happen while the sides are caught in spiralling violence on the ground.

The UN Security Council met yesterday.

The US will certainly come under increasing pressure from European and Arab allies to call for an early truce, though so far it shows no sign of softening its stand that a ceasefire cannot preserve the status quo.

Both the US and Israel want to make sure that any solution leads to the removal of Hizbollah from the border and its eventual disarmament under a UN resolution, though it is unclear the guerilla group would accept the force.

If an agreement were reached, then Israel might well accept Hizbollah's demand to free some prisoners in exchange for the captured soldiers.