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Hezbollah confirmed the death of Ibrahim Aqil, hailing him as 'one of its great leaders'. A second senior commander, Ahmed Mahmoud Wahbi, was also killed.
A Hezbollah financier in the US has pleaded guilty to contravening Washington's sanctions against the group.
One of the security sources told Reuters it was very hard to detect the explosives "with any device or scanner."
Hezbollah has fired dozens of rockets into Israel, following a week of tensions in Lebanon following massive air strikes and pager bombings.
Washington has denied that ceasefire talks are collapsing, as Israel continued attacks on Gaza, the West Bank and Lebanon.
Multiple places were targeted in Lebanon by the Israeli military on Thursday following a series of pager and device attacks.
Israel has targeted Hezbollah members with pagers rigged with explosives. °®Âþµº looks into whether this violated international law?
If further details lead the pager attack to Europe, questions will arise over the EU's responsibility and whether there might have been legal breaches.
Israel's Shin Bet claims to have thwarted Hezbollah's plan to assassinate a former security official using a remote-controlled device.
The New York Times reports that the Israeli military concealed explosive materials within a shipment of Taiwan-made pagers for the attack on Hezbollah members