Biden warns against 'full-scale war' between Israel and Lebanon

US President Joe Biden has warned against a further intensification of the fighting between Israel and the Lebanese militia Hezbollah.

A "full-scale war is not in anyone's interest," Biden told world leaders at the opening of the United Nations General Assembly on Tuesday.

"Even as the situation has escalated, a diplomatic solution is still possible," he said.

Biden also used his final speech as president at the annual high-level UN gathering to condemn the October 7 attack by the Palestinian militant group Hamas on Israel.

But he also acknowledged the humanitarian crisis in the Gaza Strip and the violence committed by Israeli settlers against Palestinians in the occupied West Bank.

"I put forward with Qatar and Egypt a ceasefire and hostage deal," he said of the US plan to halt the fighting in Gaza.

"It's been endorsed by the UN Security Council. Now is the time for the parties to finalize its terms, bring the hostages home and secure security for Israel and Gaza."

In the long term, Biden once again spoke out in favour of a two-state solution, "where Israel enjoys security and peace" and "where Palestinians live in security, dignity and self-determination in a state of their own."

Both Israeli Prime Minister Benjamin Netanyahu and Hamas reject a two-state solution.