Israel, Gaza death toll crosses 1,200; Netanyahu tells his country to prepare for 'long and difficult war'

Israeli troops fought to regain control of the desert around the Gaza Strip and evacuate people from the embattled border area on Monday, as the death toll from the war with Hamas surged above 1,200 by the third day of clashes.

Prime Minister Benjamin Netanyahu warned Israel on Sunday to prepare for a "long and difficult" conflict a day after Palestinian militant group Hamas launched a surprise assault from Gaza, firing a barrage of rockets and sending a wave of fighters who gunned down civilians and took at least 100 hostages.

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The attackers blew through a fortified border fence and gunned down civilians and soldiers in Israeli communities along the Gaza frontier during a Jewish holiday. The rampage included an assault on a crowded music festival where authorities had removed about 260 bodies by Sunday.

More than 700 Israelis have been killed since Hamas launched its large-scale attack, according to the Israel Defense Forces (IDF) on Monday -- the country's worst losses since the 1973 Arab-Israeli war.

Gaza officials reported at least 413 deaths in the impoverished and blockaded enclave of 2.3 million people, which was hammered by Israeli air strikes on 800 targets ahead of what many feared may be a looming ground invasion.

Tens of thousands of Israeli forces were deployed to battle holdout Hamas fighters in the south, where the bodies of civilians had been found strewn on roads and in town centres.

"Overnight IDF fighter jets, helicopters, aircraft and artillery struck over 500 Hamas and Islamic Jihad terrorist targets in the Gaza Strip," the military said in a statement.

"We're still fighting. There are between seven to eight open places around Gaza (where) we have still warriors fighting terrorists," military spokesman Richard Hecht told reporters.

US President Joe Biden ordered "additional support for Israel in the face of this unprecedented terrorist assault by Hamas".

US Defense Secretary Lloyd Austin said Washington "will be rapidly providing the Israel Defense Forces with additional equipment and resources, including munitions".

Austin directed the USS Gerald R. Ford aircraft carrier and group of warships to the eastern Mediterranean, and said that Washington was augmenting fighter aircraft squadrons in the region.

Hamas has said the US aid amounted to "aggression" against Palestinians.

The conflict has had global impact, with several other countries reporting nationals killed, abducted or missing, among them Brazil, Britain, France, Germany, Ireland, Mexico, Nepal, Thailand and Ukraine.

A US National Security Council spokesperson confirmed that "several" Americans had been killed in the surprise attack, but did not provide further details.

Oil prices soared more than four percent Monday, sparking concerns about possible supply shocks from the crude-rich region.

Brent jumped 4.7 percent to $86.65 and West Texas Intermediate was up 4.5 percent at $88.39 in early Asian business.

Shock and dismay gripped Israel after at least 100 citizens were captured by Hamas and abducted into Gaza, with images circulating on social media of bloodied hostages.

Yifat Zailer, 37, said she was horrified to see online video footage from Gaza that showed her cousin and the woman's children, aged nine months and three years.

"That's the only confirmation we have," she told AFP, her voice breaking with emotion, and adding there was no information on her cousin's husband or her elderly parents.

"After the army took control of the kibbutz, they weren't at home," she said. "We assume they were kidnapped ... We want to know what their condition is, we want them to return safe. They're innocent civilians."

Israel also came under attack from the north when Lebanon's Hezbollah launched guided missiles and artillery shells Sunday "in solidarity" with the unprecedented Hamas offensive, without causing any casualties. Israel responded with artillery strikes across the UN-patrolled border.

"We recommend Hezbollah not to come into this," said army spokesman Richard Hecht. "If they come, we are ready."

Israel was stunned when Hamas launched their multi-pronged offensive on Saturday, the Jewish Sabbath, with at least 3,000 rockets raining down as fighters infiltrated towns and kibbutz communities and stormed an outdoor rave where many revellers were shot dead.

Panicked Israelis hiding in their homes told reporters that militants were going door to door and shooting civilians or dragging them away.

"Israel was caught flat-footed by the unprecedented attack," said Jonathan Panikoff, director of the Scowcroft Middle East Security Initiative. "I've heard multiple comparisons to 9/11, and many Israelis are struggling to understand how this could have happened."

Western capitals have condemned the attack by Hamas, which Washington and Brussels consider a terrorist group.

Israel's foes have praised the assault, including Iran whose President Ebrahim Raisi voiced support when he spoke with the leaders of Hamas and the Islamic Jihad group.

Pro-Palestinian protests took place in the United States, Iraq, Pakistan and other countries, while Germany and France were among nations stepping up security around Jewish temples and schools.

In the Egyptian city of Alexandria a police officer opened fire "at random" on Israeli tourists Sunday, killing two of them and their Egyptian guide before he was arrested.