Smoke billows during Israeli bombardment on the southern Lebanese border village of Khiam. AFP
"We don't want to see that escalation of the conflict which would just lead to further loss of life from both Israelis and the Lebanese people and would greatly harm Israel's overall security and stability in the region," State Department spokesman Matthew Miller told reporters.
Netanyahu, visiting the northern border area after eight months of war on Gaza that has devastated the strip, warned Israel was "prepared for a very intense operation" along the border.
The trip comes after nearly daily fire with fighters in Lebanon from Hezbollah, resistance group.
Miller, however, played down suggestions that war was imminent with Lebanon.
"The statements from the Israeli government saying that they are ready for military operation, if necessary, (are) different than saying that they have made a decision to conduct a military operation," Miller said.
"We are still in a place where we believe they prefer a diplomatic solution," he said.
Miller, however, said the United States understood the "untenable situation for Israel" on its northern border.
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