Iran is branded a ‘terrorist state’ as it calls for more attacks against Israel amid fears of an all-out war

Iran was branded a ‘terrorist state’ last night as spiraling violence threatened to spill over into a major conflict in the Middle East.

Israel’s Prime Minister Benjamin Netanyahu vowed a ‘mighty revenge’ and vowed to ‘reduce to rubble’ parts of Gaza run by Hamas.

Forces in the north also exchanged rockets and artillery fire with Lebanon’s Iran-backed Hezbollah militia.

Lieutenant Colonel Jonathan Conricus, spokesman for the Israel Defense Forces (lDF), said: ‘Without Iran’s funding, weapons, training, guidance and political incitement, Hamas would not have the ability or the capacity.’

He added: ‘It was a watershed moment, unprecedented in scale, severity, brutality and the sheer glee with which terrorists massacre Israeli citizens.

Israel's Iron Dome anti-missile system intercepts rockets launched from the Gaza Strip

Israel’s Iron Dome anti-missile system intercepts rockets launched from the Gaza Strip

Last night Israeli forces said more than 400 Hamas fighters had been killed in the last 24 hours in retaliation.  Smoke and flames rise after Israeli forces launch an airstrike on Gaza City

Last night Israeli forces said more than 400 Hamas fighters had been killed in the last 24 hours in retaliation. Smoke and flames rise after Israeli forces launch an airstrike on Gaza City

“The atrocity they committed, they opened the floodgates to hell on themselves and on the Gaza Strip.”

On Saturday, Iranian Supreme Leader Ayatollah Ali Khamenei’s top military adviser said the regime would continue to support attacks “up to and including the liberation of Palestine and Jerusalem”.

The country’s foreign ministry said the attack was “a spontaneous movement of resistance groups and… oppressed people in defense of their inalienable rights”.

Videos carried by state television showed people gathered at Tehran’s Palestine Square to welcome news of the attack, chanting “death to Israel” and setting off fireworks.

Last night Israeli forces said more than 400 Hamas fighters had been killed in the last 24 hours in retaliation for the surprise attack on Saturday. More than 2,000 were wounded in Gaza.

Tens of thousands of Israeli soldiers are stationed around Gaza, a narrow strip that is home to 2.3 million Palestinians.

Social media footage showed tanks massing along the border, with military officials admitting they were ‘ready’ to go in if necessary.

Pockets of terrorists were still battling IDF soldiers on Israeli territory last night, as officers yesterday described them fighting ‘trash to trash’ to regain control of most of the infiltration points along the security barriers.

Residents fled homes near the border to escape airstrikes as Israeli forces struck Gaza, hitting more than 500 targets in 24 hours, including command centers and ammunition depots.

Rockets also hit housing blocks, tunnels, a mosque and homes of Hamas officials in Gaza, killing 20 children.

Although Palestinian civilians bore the brunt of Israel’s anger, a senior British politician said Hamas’ bloodiest attack in decades had ‘Iran’s fingerprints all over it’.

Alicia Kearns, chair of the Commons foreign affairs committee, added: ‘The fact that it was land, sea and air took the IDF by shock and the coordinated nature of the attacks.

‘It is almost impossible to believe that Hamas could have done this without explicit Iranian support.

“Iran is a terrorist state and that’s how it should be treated.”

Children walk on the ruins of a mosque destroyed in Israeli airstrikes in Khan Yunis, southern Gaza Strip

Children walk on the ruins of a mosque destroyed in Israeli airstrikes in Khan Yunis, southern Gaza Strip

She added that Britain was complacent about the risks posed by the escalating conflict in the region, saying there was a “lack of political will” to engage in the Middle East.

Yesterday, US President Joe Biden issued a warning to Iran and other countries, saying: ‘This is not a moment for any party hostile to Israel to exploit these attacks.’

But he faced condemnation from Republican presidential candidates who claimed $6 billion (£4 billion) in oil revenue that his administration recently unfroze in a prisoner swap with Iran could have helped finance the operation.

Former President Donald Trump said: ‘Unfortunately, American taxpayer dollars helped fund these attacks, which many reports have come from the Biden administration.’

Treasury Under Secretary Brian Nelson described the claims as ‘false and misleading’.

Meanwhile, Robert O’Brien, who is national security adviser under Mr. Trump’s administration has called for US special forces to be deployed to Israel.