A previously unknown group, apparently a Syrian rebel cell, said it carried out yesterday's attack in the densely populated southern suburbs of Beirut, between Bir al-Abed and Rweiss, districts where Hezbollah security is normally tight.
Police said the death toll had climbed to at least 22, while the Red Cross said 325 people were wounded and the National News Agency reported that seven people, including a man and his three children, were missing.
The bombing, reminiscent of the frequent attacks during Lebanon's 1975-1990 civil war, sent a plume of black smoke into the Mediterranean sky, caused heavy damage to buildings and setting several cars ablaze.
Lebanese leaders from across the political spectrum condemned the bombing, and a day of mourning was declared.
President Michel Sleiman said the "terrorist" bombing targeted all Lebanese, not just Hezbollah.
Former prime minister Saad Hariri, a Sunni leader and staunch critic of Hezbollah, said the attack was "part of a vicious terrorist scheme" targeting Lebanon.
"During this period of heightened tensions, the secretary general urges all Lebanese to remain united, to rally around their state institutions and to focus on safeguarding Lebanon's security and stability," the statement said.
The UN Security Council, meanwhile, "strongly condemned the terrorist attack."
The 15-member body called for "all Lebanese people to preserve national unity in the face of attempts to undermine the country's stability" and urged all parties "to refrain from any involvement in the Syrian crisis."
A witness told a Lebanese television channel that he saw a van drive past three times before its driver found a parking spot where he set off the bomb.
The explosion had the impact of an "earthquake", another witness said.
Hezbollah is a key supporter of President Bashar al-Assad and has this year sent fighters across the border to bolster government forces, which have been battling a deadly anti-regime revolt since March 2011.
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