In a special political speech to the press association, he declared that Hibzullah had won the current conflict with Israel, as the group's leader Hassan Nasrallah did on Monday.
Assad said that the Middle East had changed following the resistance and that "the American plan to create a new Middle East turned into an illusion the moment Hibzullah won in Lebanon."
Foreign Minister Tzipi Livni said in response to his remarks that "Syria will have to decide where it is. Lebanon is meant to take off to a different direction without them. They cannot continue influencing and leading an open front with Hizbullah."
According to Assad, Israel had anyway planned to attack Lebanon and would have done so even without the soldiers' kidnapping.
"The war in Lebanon was prepared in advance and the soldiers' abduction was only an excuse, and the world accepted this excuse. They planned to attack in the winter so as not to ruin the tourism season of their accomplices in Lebanon. The current battles proved that we were right and that resistance is the only way," he said.
Assad made it clear that the resistance was justified due to Israel's actions: "Resistance is necessary, required and legitimate." Its legitimacy is based on Israel's actions in the past five years, including the Air Force sorties over Syria."
He noted bitterly: "Israel is trying to be part of this region through the 'big Middle East plan'. There are those who think time is on their side and every generation in the Arab world accepts them more, but I am a representative of the third generation and I you see that I hate it (Israel) more. We don't like to use the word hatred but Israel has left to option for itself but to be hated."
He addressed Israelis, saying: "I tell you: You tasted the latest war in Lebanon. Your weapons, including nuclear weapons, won't succeed in protecting you. Generations are developing and they will manage to defeat you. The Israeli leadership needs to save itself from its own stupidity and to decide from the corner in which it has been places whether to go for peace and return the rights or head for instability."
'Peace? We did not give up any option'
Assad spoke about the peace process and said it did not prove itself.
"Arabs gave everything and got nothing. And therefore Syria refused to give up its rights. When we say we chose peace as a strategic option, this doesn't mean we gave up other options – but quiet the opposite," he said.
Referring to other things Assad said: "Israeli is the enemy. It doesn't want peace. It was built on aggression and expansion."
Assad's speech was interrupted by Syrian supporters waving posters of Hizbullah leader Sheikh Hassan Nasrallah and urging Assad to choose the "resistance path."
"We look proudly at a strong Lebanon, that chose resistance and smashed the legend of the undefeatable army," shouted a woman in the crowd, drawing a loud round of applause.
"We are convinced that the real path to peace is through negotiations but if this path is impossible – resistance is the only path. Not necessarily armed resistance, but cultural and political resistance. The aim of the resistance is peace and not war. Therefore it doesn't undermine peace," Assad said.
US President George W. Bush said on Monday that Iran and Syria were the primary sponsors of Hizbullah guerrillas who captured two Israeli soldiers, igniting the battle with Israel.
'We’ll liberate Golan Heights'
In a special interview with Egyptian newspaper Al-Osboa, Assad said his country is prepared for any war that may break out with Israel , adding that he is convinced that the chances for peace have decreased and that “the Golan Heights will be liberated by Syria.”
“If Israel launches a war against Syria, it will pay a heavy price,” he added.
He said Syria has been following Israel closely, particularly after former Prime Minister Ariel Sharon came to power.
“The fact that he was elected by such a large majority attests to the fact that the Israeli nation does not want peace,” Assad said.
“Syria and the resistance (referring to Hizbullah ) read the situation correctly in that we predicted the confrontation. There have been extensive preparations for the current battle. Our disagreement focused on the nature of the resistance. There were those who thought the resistance didn’t stand a chance in a time when satellites reveal everything, track everything down and can direct severe blows at the resistance, but the reality proved otherwise.
“In Lebanon they (Israel) destroyed everything, but they were unable to achieve their true military objectives on the ground; the resistance has won the war, and now we must win the diplomatic battle as well.”
Ronny Sofer contrinuted to the report