After retaking control of eight towns under Russia-mediated deals on Saturday, Assad's regime now controls more than half of Daraa province, up from just 30 percent before the escalation, according to the Observatory.
UN High Commissioner for Human Rights Zeid Raad Al Hussein warned of a humanitarian catastrophe in Deraa and urged neighbouring countries to provide safe passage to those wishing to flee the violence.
Israel has deployed artillery and armoured reinforcements along its northern border with Syria, the Israel Defence Forces said on Sunday, as tens of thousands of Syrians fled towards its borders and those of Jordan.
Eastern Ghouta is in that region and was taken by an assault that killed over 1,000 civilians and decimated several towns.
The campaign has shattered a "de-escalation" deal negotiated by the United States, Russia and Jordan that had mostly contained fighting in the southwest since a year ago. "The moment one of them is out, the regime disappears", he said.
Thousands of displaced Syrians live in tent camps near the border with Israel, with many hundred pouring in in recent days following fighting in Syria's seven-year civil war in which approximately 500,000 people have died.
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Talks to end the Syrian government's offensive on Deraa province collapsed on Saturday after rebels rejected a demand to surrender by regime ally Russian Federation. Jordan, which is already hosting 660,000 registered refugees, says it can not accept any more and has sealed its border, despite appeals from aid groups.
Negotiations between the Syrian opposition groups and Russian Federation on Saturday could not end with a peace deal in the southern Daraa province. The Israelis have already targeted Iran-backed militia fighting on Assad's side, which they have vowed to keep far from their country's borders. So far, the USA has remained silent in the face of a breach, and rebels are accusing them of making a "malicious deal" to remain silent.
Talks failed on Saturday after a meeting in which Russian officers met the rebel team and demanded a complete surrender, rebels said.
However, a state department official in Washington said the United States could not confirm the truce report, and the situation in southern Syria remained "grim" with Russian Federation and Syrian regime forces continuing to bomb the area.
At least 270,000 people have fled their homes in south-western Syria since the military launched an assault on rebel-held areas two weeks ago, the United Nations says.
"With regards to southern Syria, we will continue to defend our borders, we will extend humanitarian assistance as much as we can, [but] we will not allow entry to our territory", Netanyahu said.