Washington expressed concern about Hezbollah's role and diplomats said the EU was poised to place the powerful Shiite militant group's military wing on its list of international terrorist groups.
Separately, Israeli and Syrian forces traded fire on the Golan Heights. The Syrian army claimed it had destroyed an Israeli military vehicle that crossed the armistice line but the Jewish state denied that.
In central Homs province, Hezbollah fighters were reportedly leading the battle for Qusayr, three days after the Syrian regime began an assault to regain control of the town.
A source close to Hezbollah told AFP it "has sent new elite troops to Qusayr".
Hezbollah's television channel broadcast images of funerals for five members it said were killed carrying out their "jihadist duty".
The Observatory said more than 100 people have been killed in Qusayr since the fighting began on Sunday, including 31 Hezbollah fighters, 70 rebels and nine soldiers.
Abdel Rahman described the rebel response to the assault in Qusayr as "fierce," but expressed concern for the fate of some 25,000 trapped civilians.
The town, which lies between Damascus and the coast, and sits between the Syrian city of Homs and the Lebanese city of Tripoli, is a key strategic prize.
The regime is hoping to protect its access to the coast and deprive the rebels of links to Tripoli, a majority Sunni town that provides a conduit for fighters and weapons.
"It is important for the Syrians, the Iranians and Hezbollah to control the road" linking Tripoli to Syria, Lebanese analyst Waddah Sharara told AFP.
Today, a security source confirmed the death of Sunni man from the town in clashes.
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