The Israel Defense Forces said earlier in the day that it had identified and struck "a Hezbollah terrorist cell operating in the area of Houla."
"Israeli drones struck a house in the Houla locality ... in southern Lebanon with guided missiles. The shelling resulted in the death of two people," the source said.
Tensions on the Israeli-Lebanese border worsened after the start of Israel's military operation in the Gaza Strip in October. The Israeli army and Hezbollah fighters fire on each others positions almost daily in areas along the border.
The Israeli military said in June that it had approved plans for an offensive against Lebanon, while Israeli Foreign Minister Israel Katz said that Israel could launch an all-out war against the neighbor. Hezbollah leader Hassan Nasrallah said the group would invade northern Israel if the confrontation intensified.