Netanyahu declares Israel is 'at war' with Iran proxies

Israeli PM Benjamin Netanyahu has declared Israel is in a "multi-arena war against Iran's axis of evil," targeting its affiliates, including Hamas and Hezbollah.

"The state of Israel is in a multi-arena war against Iran's axis of evil," Netanyahu said at a weekly cabinet meeting.

"We are striking hard at any of its arms, we're prepared for any scenario both on the defence and the offence.

"I tell our enemies again: We will react and exact a heavy price for any act of hostility towards us, from any arena."

Tensions escalated after the assassinations of Hamas leader Ismail Haniyeh in Tehran and Hezbollah commander Fuad Shukr in Beirut, both backed by Iran.

Hamas and Hezbollah have vowed retaliation, accusing Israel of the killings, as cross-border fire continues and Israel braces for northern border tensions with Lebanon.