UPDATE - Another full-scale war could be 'devastating' for both Israel, Lebanon, warns US defense chief

ADDS MORE REMARKS; REVISES DECK

By Burak Bir

LONDON (AA) - The US defense chief on Thursday said the situation in Lebanon and northern Israel is "deeply troubling," warning that another full-scale war could be "devastating" for both countries.

Speaking at a joint press conference with his British and Australian counterparts in London, Lloyd Austin said that almost a year later, tens of thousands of Israeli and Lebanese civilians still cannot safely return home.

"We now face the risk of an all-out war, another full scale war would could be devastating for both Israel and Lebanon," he warned.

Austin said a diplomatic solution is "the only way" to ensure that displaced civilians on both sides of the border can finally go back home.

"So, let me be clear, Israel and Lebanon can choose a different path, despite the sharp escalation in recent days, a diplomatic solution is still viable," he added.

Austin stressed that he echoed leaders who called for an immediate 21-day ceasefire that will provide time for the diplomacy needed to achieve a durable arrangement.

"This time can also be used to conclude and implement a deal to secure a cease-fire in Gaza and to bring all of the hostages home," he said, adding that all parties "should seize this opportunity."

His remarks came following an AUKUS defense ministerial meeting in London, first session of the grouping held outside of the US.

Australian Defense Minister Richard Marles also expressed concern over the situation in the Middle East and urged nationals to leave the country "while they can."

British Defense Secretary John Healey also touched on the escalation in the region, urging Israeli Prime Minister Benjamin Netanyahu and Hezbollah leaders to "pay heed to the combined voices" on 21-day cease-fire "where talks can start and the fighting can end."

Israel has pounded Lebanon since Monday morning, killing at least 677 people and injuring over 2,500 others, according to figures released by the Health Ministry.

Hezbollah and Israel have been engaged in cross-border warfare since the start of Israel's war on Gaza, which has killed more than 41,500 people, mostly women and children, following a cross-border attack by Hamas last October.

- 'AUKUS has never been more important'

During their meeting, the defense leaders discussed Pillars I and II of AUKUS, a trilateral security partnership "intended to promote a free and open Indo-Pacific that is secure and stable."

Pillar I revolves around the development of conventionally armed nuclear-powered submarines for the Australian navy; while Pillar II calls for collaboration on advanced capabilities that will involve technology and information sharing.

On AUKUS pact, Healey said that it "has never been more important," in "a world of growing uncertainty," and has both economic and military importance.

He said their investment in this partnership helps industries to prosper, boosts jobs and growth across the three nations, and the investment in their future technologies helps drive innovation.

The British defense chief also announced that with his Australian counterpart they have agreed that occasional negotiations will soon be underway for a new bilateral treaty to bind AUKUS collaboration into law.

"This not only reflects our commitment to secure a secure Indo-Pacific region where international rules are respected, it also sends a very strong message that our defense alliance is one that will endure for many decades to come."

The Australian defense minister said they met at a time when "the rules-based order is under pressure, under threat."

Marles said Australia, the UK and the US share strategic alignment, values and stand in support of the maintenance of the rules-based order.

AUKUS is widely seen as an effort counter China, which has denounced the pact as irresponsible.