Israel retaliates after Hamas attacks, deaths pass 1100
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Israel has pounded the Palestinian enclave of Gaza, killing hundreds of people in retaliation for one of the bloodiest attacks in its history when Islamist group Hamas killed 700 Israelis and abducted dozens more.
Hamas fighters’ rampage through Israeli towns on Saturday was the deadliest such incursion since Egypt and Syria’s attacks in the Yom Kippur war 50 years ago and has threatened to ignite another conflagration in the long-running conflict.
In response, Israeli air strikes hit housing blocks, tunnels, a mosque and homes of Hamas officials in Gaza on Sunday, killing more than 400 people, including 20 children, in keeping with Prime Minister Benjamin Netanyahu’s vow of “mighty vengeance”.
The violence fuelled volatility on global markets on Monday, with concerns about possible disruptions to supplies from Iran.
Iran is an allay of Hamas and while it congratulated Hamas on the attack, its mission to the United Nations said Tehran was not involved in the attacks.
Any sustained rally in oil prices would act as a tax on consumers and add to global inflationary pressures, which weighed on equities as S&P 500 futures shed 0.7 per cent and Nasdaq futures lost 0.6 per cent.
Beyond blockaded Gaza, Israeli forces and Lebanon’s Iran-backed Hezbollah militia exchanged artillery and rocket fire, while in Egypt, two Israeli tourists were shot dead along with a guide.
Appeals for restraint came from around the world, though Western nations largely stood by Israel, while Iranian President Ebrahim Raisi telephoned the Hamas chief to congratulate him for the “victory” and Hezbollah and protesters in various Middle Eastern nations lauded Hamas.

In southern Israel on Sunday, Hamas gunmen were still fighting Israeli security forces more than 24 hours after their surprise, multi-pronged assault of rocket barrages and bands of gunmen who overran army bases and invaded border towns.
Israel’s military, which faces awkward questions for not thwarting the attack, said it had regained control of most infiltration points along security barriers, killed hundreds of attackers and taken dozens more prisoner.
Israeli air strikes on Gaza destroyed Hamas’ offices and training camps, but also houses and other buildings. The Palestinian health ministry said 413 Palestinians, including 78 children, were killed and 2300 people wounded since Saturday.
Hamas fired more rocket salvoes into Israel on Sunday.
The Israeli military said it had deployed tens of thousands of soldiers around Gaza, a narrow strip of land that is home to 2.3 million Palestinians, and was starting to evacuate Israelis around the frontier.
Israel has not released an official toll but its media said at least 700 people were killed in Saturday’s attacks, children among them. Military spokesperson Daniel Hagari called it “the worst massacre of innocent civilians in Israel’s history.”
Several Americans were killed by Hamas attackers, a White House National Security Council spokesperson confirmed, saying the US would continue to monitor the situation closely.
US President Joe Biden spoke to Netanyahu for the second straight day on Sunday, saying in a post on the social media platform X that he expressed “my full support for the people of Israel in the face of an unprecedented and appalling assault by Hamas terrorists.”
The shocking flare-up may undermine US-backed moves towards normalising relations between Israel and Saudi Arabia – a security realignment that could threaten Palestinian hopes of self determination and hem in Hamas’ main backer, Iran.
Conditions in the West Bank have worsened under Netanyahu’s hard-right government, with more Israeli raids and assaults by Jewish settlers on Palestinian villages, and the Palestinian Authority called for an emergency Arab League meeting.
Peacemaking has been stalled for years, with Israeli politics distracted this year by internal wrangling over Netanyahu’s plans to overhaul the judiciary.
Reuters