WOLF BLITZER, CNN ANCHOR: For more perspective now on the situation between the Israelis and the Palestinians, we are joined by journalist Raghida Dergham. She's senior diplomatic correspondent for the London-based Middle Eastern newspaper "Al Hayat," and is Lebanese by descent.

Ms. Dergham, thank you so much for joining us from New York.

How explosive, potentially, is this situation right now, for escalating, beyond simply the Israelis and the Palestinians?

RAGHIDA DERGHAM, "AL HAYAT": It is quite explosive. However, tonight, as you pointed out earlier, there was an adoption of a Security Council resolution, and that 14 countries voted for, at any rate, the Security Council now is calling for a mechanism, to establish a mechanism for an inquiry into what's happened. It has condemned acts of violence, especially those against Palestinians.

And I think there is a way, right now, to use this resolution to move forward: a) by the mechanism, and, b) by trying to hold back this language of threats, and intimidation, and saying I have no partner at the table of negotiations. It is too explosive, and it's too dangerous and Israel could win a war with Arab countries, but I think cannot win a war inside. So it is better for Israel if Mr. Barak seizes the moment and sort of stops walking in the steps that are being drawn for him by extremists, be it within Israel or outside it.

BLITZER: Obviously another point of enormous potential controversy, the three Israeli soldiers who have been captured by the Hezbollah now in Lebanon. What are the prospects of those three soldiers being returned to Israel? You know the situation over there quite well.

DERGHAM: Wolf, it looks that for -- if things calm down and if we stop this countdown to the ultimatum, I think that would be enough diplomatic work behind the scenes with the United Nations and others to see if the Israelis would fulfill probably their part of the commitment made few months earlier, whereby they have said they would release the Lebanese prisoners.

At this point now, of course, we have Hezbollah holding three Israeli soldiers. Three Palestinians were killed as the Israelis fired live ammunition at protesters who were throwing rocks across the fence from Lebanon. So if there is a containment of the escalation everywhere else, I believe there is room to deal with this diplomatically behind scenes with the U.N. or through the U.N.

That is my feeling, but if the countdown, if you will, the ultimatum, the 48 hours is explosive, then who knows what will happen to the soldiers or what Hezbollah will do in southern Lebanon or for that matter what other Arab countries would react in case there is an attack by Israelis into Lebanon as promised.

BLITZER: Raghida Dergham, unfortunately, we have to leave there. Thanks for taking the time to come into our New York bureau.

DERGHAM: Thank you.

BLITZER: Thank you.