Israel's military has begun using a new tactic in its fight against Hezbollah by targeting the Iranian-backed militant group's financial unit in Lebanon.

Numerous airstrikes were carried out overnight on the Hezbollah-run al-Qard al-Hassan banking institution inside Lebanon, which provides services for the general public after other financial institutions failed in recent years. However, the banking unit is also allegedly used by Hezbollah for purchasing weapons and paying operatives.

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Israeli airstrikes have been reported across many parts of Lebanon, including in Beirut near the country's international airport. But a number of strikes also reportedly targeted residential buildings, marking another significant escalation.

Late last month, the Israeli military said it had launched a "limited, localized" ground operation into the country, that has since boiled over into all-out war between the two sides and risks sparking an even wider regional conflict.

Meanwhile, U.S. envoy Amos Hochstein is in Lebanon holding high-level meetings to try and find a diplomatic solution to end the fighting between Israel and Hezbollah in Lebanon.

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Israel has reportedly given the U.S. a list of documents with conditions to end the war, but is also demanding that Israeli forces be allowed to engage in active enforcement to prevent Hezbollah from re-arming or re-building.

U.S. Secretary of State Antony Blinken is also set to make his 11th wartime visit to the Middle East, with a focus on trying to broker a cease-fire agreement in Gaza after previous failed attempts.