Regardless, the pullback gave Hezbollah the opportunity to claim its fighters had driven out Israel's war machine.

Nasrallah said his guerrillas had dealt Israel a "serious defeat" in the town. "This elite force was fleeing and scurrying like mice from the battleground," he said.

Even Israeli officials said the battle was tougher than expected in Bint Jbail, a mainly Shiite town with deep symbolism for Hezbollah. Nicknamed "the capital of the resistance," the town showed vehement support for the guerrillas during the 1982-2000 Israeli occupation of the south.

Eighteen soldiers were killed in the town - nine of them in Hezbollah ambushes Wednesday, the military's worst one-day loss in the campaign. Adam said dozens of guerrillas were killed in the week of fighting. But Hezbollah acknowledges the deaths of only 35 fighters in the entire 18 days of warfare.

Israeli troops still hold Maroun al-Ras, a nearby village, as well as the high ground above Bint Jbail, Adam said, adding that the air force would continue to pound Bint Jbail and ground forces could return at any time.

At least 458 Lebanese have been killed in the fighting, according to a Health Ministry count Friday based on the number of bodies in hospitals, plus Saturday's deaths. Some estimates range as high as 600 dead, with many bodies buried in rubble.

Thirty-three Israeli soldiers have died, and Hezbollah rocket attacks on northern Israel have killed 19 civilians, the Israeli army said.

The United States is under increasing pressure to quickly end the fighting, which in the last weeks has spiraled into an all-out Israeli attempt to end Hezbollah's domination of south Lebanon.

The peace package Rice brings to the region addresses some of the demands made in the Lebanese government proposal that Hezbollah reluctantly supported.

The U.S. package calls for a U.N.-mandated multinational force that can help stabilize in the region, according to a U.S. official speaking on condition of anonymity because of the sensitive nature of the discussions.

It also proposes: disarming Hezbollah and integrating the guerrilla force into the Lebanese army; Hezbollah's return of Israeli prisoners; a buffer zone in southern Lebanon to put Hezbollah rockets out of range of Israel; a commitment to resolve the status of a piece of land held by Israel and claimed by Lebanon; and the creation of an international reconstruction plan for Lebanon.

The latter two provisions resembled parts of Beirut's proposal. But they fall short of the demands sought by Hezbollah, including a prisoner swap to free Lebanese held for years in Israeli prisons and the disputed land, known as Chebaa farms, put under U.N. supervision until its status can be resolved.