Military Intelligence Chief Amos Yadlin told the cabinet on Sunday that Syria was continuing to arm Hezbollah, and had in fact become the Lebanese militia's arsenal.

"Assad is continuing to throw open the doors of Syria's warehouses for Hezbollah, and has become 'Hezbollah's arsenal.' Assad trusts Hezbollah more than his own army and Hezbollah operatives act in Syria as if it's their own [country]," said Yadlin.

A key Israeli demand in indirect peace negotiations with Syria is that it cut its ties with Hezbollah, and in particular, cease supplying the group with weapons.

Yadlin did actually say he believed Assad was interested in a peace deal with Israel "on his conditions," but was waiting for the establishment of a new administration in the United States.

Yadlin added that, "The Syrians have removed almost every restraint; in their irresponsible behavior they are giving Hezbollah possession of almost every strategic capability they own."

When asked about a car bombing in Syria in September that left 17 dead, Yadlin said "those who sleep with dogs shouldn't be surprised when they wake up with fleas."

"This was an attack carried out by global Jihad...which is aided by the Syrian regime, which gives [terrorists] immunity and free passage to Iraq and Lebanon."

Yadlin also said that Hezbollah is still seeking to avenge the death of its former deputy chief Imad Mughniyah, who was killed in a bombing in February that shook a residential neighborhood of Damascus. No one has claimed responsibility for the blast, but Hezbollah says it was orchestrated by Israel.

Yadlin said Hezbollah is only holding off from an attack out of their fear of a harsh Israeli response, and are therefore pursuing indirect means of attacking Israel. One way he says, has been by increasing their activities in the Gaza Strip, from where they could potentially attack the Israeli home front or target Israelis traveling in Sinai. Yadlin added that such meddling in the Gaza Strip is not in the interests of Hamas, which is seeking to preserve a fragile ceasefire with Israel in the Strip.