Nasrallah spoke via a video link from a secret location to tens of thousands of supporters in Beirut who gathered to mark Ashoura, the annual Shiite commemoration of the 7th-century death of Imam Hussein, the Prophet Muhammad's grandson.
Hezbollah fired nearly 4,000 rockets at Israel during the 2006 war and is believed to have upgraded its arsenal since then. Nasrallah did not say how many missiles and rockets his group possesses, although in the past he said they have more than 20,000. Israel estimates the number at several times that.
"The battle with us is going to be all over occupied Palestine," the black-turbaned Nasrallah said. "From the border with Lebanon to the frontier with Jordan to the Red Sea."