European Council President Charles Michel on Tuesday criticized Israel and said it was inflicting "collective punishment" on civilians living in areas targeted by its military, AFP reported.

"Israel has the right to defend itself. Israel has the right to exist, and we support the right of Israel to exist and to defend itself," Michel said at an event on the sidelines of the UN General Assembly in New York.

"But defending itself, it doesn't mean collective punishment. It needs a principle of proportionality," he added.

Michel’s comments came as Israel continued Operation Northern Arrows against Hezbollah terrorists in Lebanon.

Lebanese authorities had claimed Monday’s strikes left 558 people dead and 1,835 wounded.

Michel’s comments follow comments by European Union (EU) foreign affairs chief Josep Borrell, who said on Monday that the escalating clashes between Israel and Hezbollah in Lebanon threaten to plunge the Middle East into all-out war.

"I can say we are almost in a full-fledged war," Borrell said ahead of a gathering of world leaders at the United Nations.

"We're seeing more military strikes, more damage, more collateral damage, more victims," he added. "Everybody has to put all their capacity to stop this."

On Sunday, Borrell said the EU is "extremely concerned" about an escalation of the conflict between Israel and Hezbollah and is calling for an "urgent" ceasefire.