That's what Carl in Jerusalem's sources are telling him:
One of my sources, Harvey in Efrat, claims to have it from 'reliable sources' that Israel is going to declare war tonight. Here's what Harvey is telling me (for the record, I have known Harvey for 35 years - we were roommates at a youth group convention in 1971, and his sources are generally from within the IDF and are usually reliable):
RUMORS FLYING THAT EHUD OLMERT WILL BE DECLARING WAR TONIGHT (2YEARS TOO LATE)?
3 DEAD IDF SOLDIERS IN THE NORTH, 2 IDF SOLDIERS KIDNAPPED, TRIPLE PRONGED ATTACK, KATYUSHA, TERRORISTS ON THE GROUND SHOOTING FREELY AT IDF OUTPOST, AND THEN CAPTURING 2 IDF SOLDIERS.
HEAVY FIGHTING GOING ON NOW..IAF KNOCKED OUT BRIDGES THROUGHOUT SOUTHERN LEBANON, IDF NAVY SHELLING BEIRUT SUBURBS,
IN GAZA, MOHAMMED DEIF, LEADER OF HAMAS, LOST OTHER LEG AND ARM, NOT DEAD YET FROM LAST NIGHT'S IAF AERIAL BOMBING ON A NON EMPTY BUILDING (RABBIS SAID ''SHEHACHAYINU" [the blessing one says on happy occasions. CiJ])
TZAV 8 [Order for general call up of reservists. CiJ] CALL UP OF RESERVES JUST ISSUED BY DEFENSE MINISTRY,
SHLOMI MOSHAV IN THE NORTH ALL CHILDREN AND PARENTS ARE IN THE BOMB SHELTERS,
IDF TANKS AND TROOPS HAVE CROSSED INTO LEBANON WHERE THEY LEFT 6YEARS AGO
IDF TANKS AND TROOPS HAVE CUT GAZA STRIP IN TO TWO SECTIONS AS IAF CONTINUES BOMBING
CENSORSHIP ON OTHER DETAILS NOW IN EFFECT BY IDF
Please note that 'officially' we have only been told that six soldiers and five civilians were wounded in the north this morning. The IDF waits to give official notice of deaths until it can notify families and release names.
This development is interesting in light of the Haaretz article in which Israel's UN Ambassador Dan Gillerman is quoted as saying that Israel would "'react in every way it deems necessary' to obtain the soldiers' release and protect its border and its people."
Update: Fox News reports that Israeli aircraft have struck targets far deeper into Lebanon than was expected. According to the AP, one target was only 10 miles away from Beirut:
BEIRUT, Lebanon (AP) -- Israeli warplanes and gunboats struck a Palestinian guerrilla base 10 miles south of Beirut late Wednesday, Lebanese security officials said, in the closest raid to the Lebanese capital since fighting erupted in southern Lebanon after guerrillas captured two Israeli soldiers.
Warplanes flew over the Naameh base in the hills overlooking the Mediterranean, about 10 miles (16 kilometers) south of Beirut. Gunboats sailed facing the position, and explosions rang out across the area.
The base is run by the Syrian-backed Popular Front for the Liberation of Palestine-General Command and was a frequent target of Israeli attacks in the past.
The latest attack comes after Israeli warplanes pounded more than 30 targets in southern Lebanon and Israeli leaders promised Lebanon a painful response for the capture of the soldiers.
Update II: Allah at Hot Air links to DEBKA, which reports that Iran's national security advisor Ali Larijani is in Damascus for the duration of the attack so he can then claim that an attack on Syria is an attack on Iran. This is Syria's and Iran's status as explained in DEBKA:
The Syrian army has been put on a state of preparedness.
DEBKAfile's military sources add that the Iranian air force, missile units and navy are also on high alert.
DEBKAfile's counter-terror sources report Hizballah acted on orders from Tehran to open a second front against Israel, partly to ease IDF military pressure on the Hamas in the Gaza Strip. This was in response to an appeal Hamas leader Khaled Meshaal made to the Iranian ambassador to Damascus Mohammad Hassan Akhtari Sunday, July 9.
DEBKAfile's Iranian sources report Tehran's rationale as composed of three parts:
1. Iran shows the flag as a champion and defender of its ally, Hamas.
2. Sending Hizballah to open a warfront against Israel is the logical tactical complement to its latest order to go into action against American and British forces in southern Iraq.
3. Tehran hopes to hijack the agenda before the G-8 summit opening in St. Petersberg, Russia on July 15. Instead of discussing Iran's nuclear case and the situation in Iraq along the lines set by President George W. Bush, the leaders of the industrial nations will be forced to address the Middle East flare-up
Any Israeli decision taken at prime minister Ehud Olmert's high level consultation in Jerusalem Wednesday night must take this turn of events into account before deciding on limited air strikes against Hizballah and Lebanese civil targets without delay.
Our sources also report that immediately after Nasrallah's statement to the media, Hizballah's leaders went into hiding, their bases were evacuated and their fighting strength transferred to pre-planned places of concealment. Ahead of the abduction, Hizballah ordnance and missile stocks were transferred to the Palestinian Ahmed Jibril's tunnel system at Naama, 30 km south of Beirut, which was built in the 1980s by East German engineers.