At least two UN armored vehicles were severely damaged by the blast and at least one of those vehicles was carrying a stock of ammunition which caused it to explode after the device detonated.
It is not known who planted the device, but Hezbollah has stated that it is not responsible for the blast and condemns the attack.
"The attack hurts the people of the south and of Lebanon," said an unnamed Hezbollah official.
It is estimated that there are 15,000 peacekeepers inside Lebanon.
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