Two Israeli air strikes against Hezbollah targets inside Syria in recent weeks have raised tension between the two.
Close to a million Israelis live in the North; an estimated quarter of a million could be evacuated in case a war breaks out with Hezbollah.
Hezbollah-friendly Michel Aoun said Hezbollah's weapons are necessary to defend Lebanon against Israel.
The Lebanese terror organization has survived the Syrian quagmire and continues to bring significant, game-changing weaponry from Iran to Lebanon.
The convoy was reported to be transferring weapons in the Damascus area.
Millions of dollars raised for weapons purchases for Syria, says DEA.
Israeli officials feared that the 8 tons of ammonium nitrate was a cache meant for numerous future attack against Israeli and Jewish targets.
A 26-year-old Lebanese-Canadian man is in custody related to the discovery of explosive material found in a home in Larnaca.
"It is a win-win situation for Hezbollah. If we attack them, we kill civilians. If we don't attack because there are civilians, it is good for Hezbollah as well," the official said.
Although neither Hezbollah, bogged down in Syria, nor Israel, having so recently fought Hamas in the Gaza Strip last summer, appear eager for it, conflict remains a possibility.