Hamas said its political chief Ismail Haniyeh was killed in "a treacherous Zionist raid on his residence in Tehran".
Iran’s Foreign Ministry spokesman says the assassinated Hamas leader’s "blood will never be wasted".
There was no immediate comment from Israel. The Israeli military said it was conducting a situational assessment.
This comes less than 24 hours after three people, including two children, were killed and 74 wounded in an Israeli strike in Beirut. The Israeli military described the attack "targeted assassination operation" against Hezbollah commander Fuad Shukr.
Haniyeh was assassinated in the early hours of the morning in Iran, Palestinian group Hamas said on Wednesday, drawing fears of a wider escalation in a region shaken by Israel’s offensive in Gaza and a worsening conflict in Lebanon.
Iran’s Revolutionary Guards confirmed the death of Haniyeh, hours after he attended a swearing-in ceremony for the country’s new president on Tuesday, and said it was investigating.
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