Lebanon's militant Hezbollah leader has praised an Arab decision to halt peace talks with Israel, saying the only option remaining is armed resistance against the Zionist state.

Hassan Nasrallah spoke to tens of thousands gathered in Hezbollah's southern Beirut stronghold for Ashoura a holiday observed by Shia Muslims world over marking the anniversary of the seventh-century death of the Prophet Muhammad's grandson Hussein.

People gathered in predominantly Shia areas in southern and eastern Lebanon and raised pictures of Nasrallah and Iran's Ayatollah Ali Khamenei chanting slogans in support of the imam.

Nasrallah's remarks came a day after Arab foreign ministers rejected any Israel-Palestinian peace talks before the U.S. takes a firm stance on the future borders of a Palestinian state.

Nasrallah says Arab leaders finally realized that talks with Israel are "dead." Nasrallah, spoke through a video link.