Meanwhile, local Israeli media said that the Israeli security cabinet, grouping top ministers and military brass, would convene later on Monday to discuss the next moves in Lebanon. In addition, Peretz also said that Israel must not agree to an immediate ceasefire with Hezbollah, which captured two Israeli soldiers and killed eight during cross-border attacks on July 12. The incident has triggered a massive Israeli offensive in Lebanon.

"We must not agree to a ceasefire that would be carried out immediately," Peretz said, warning that an immediate truce would only lead back to the status quo before the conflict erupted. Israel just announced a 48-hour suspension of aerial bombardments on southern Lebanon on early Monday, but a senior Israeli official said that the suspension did not mean the end of the offensive against Hezbollah.

Peretz called the suspension of airstrikes "a humanitarian gesture" which he said would not stop Israel from achieving its goals of the onslaught in Lebanon.

U.S. Secretary of State Condoleezza Rice, who just wrapped up a visit to Israel on Monday, welcomed the Israeli suspension of airstrikes and voiced optimism of hammering out a ceasefire to end fighting between Israel and Hezbollah in Lebanon this week. Moreover, Peretz stressed Israel's right of self-defense, vowing to "do whatever it takes to save Israel."

"It is a war for our home," said Peretz, praising Israeli soldiers who have fought Hezbollah guerillas.

The Israeli defense minister's speech in the Knesset has been repeatedly interrupted by fierce hecklings from Arab lawmakers. Three Arab legislators --Ibrahim Sarsur, Talab el-Sana and Jamal Zahalka-- were removed from the Knesset hall by order of Speaker Dalia Itzik after heckling Peretz and opposition leader Benjamin Netanyahu during their speeches in the special parliament session over the Israeli offensive in Lebanon.

Meanwhile, dozens of Arab Israelis demonstrated outside the Knesset building, condemning the Israeli military operations in Lebanon and Gaza while appealing for an immediate ceasefire. The massive Israeli assault in Lebanon entered the 20th day on Monday.

Over 500 Lebanese and 51 Israelis have been killed in the violence so far.

More than 50 Lebanese civilians, most of them children, were killed in an Israeli airstrike on the southern Lebanese village of Qana on early Monday, drawing international condemnation and stepped-up calls for a ceasefire.