Israel vows 'mighty vengeance' after surprise attack

Senior military officers were among those killed in fighting near Gaza, the Israeli military said

JERUSALEM/GAZA/SDEROT (Reuters) - Gunmen from the Palestinian group Hamas rampaged through Israeli towns on Saturday, killing at least 250 Israelis and escaping with dozens of hostages in by far the deadliest day of violence in Israel since the Yom Kippur war 50 years ago.

More than 230 Gazans were also killed when Israel responded with one of its most devastating days of retaliatory strikes. Fighting continued into the night.

"We will take mighty vengeance for this wicked day," Prime Minister Benjamin Netanyahu said.

"Hamas launched a cruel and wicked war. We will win this war but the price is too heavy to bear," he said. "Hamas wants to murder us all. This is an enemy that murders mothers and children in their homes, in their beds. An enemy that abducts elderly, children, teenage girls."

Hamas leader Ismail Haniyeh said the assault that had begun in Gaza, a narrow strip that is home to 2.3 million Palestinians, would spread to the West Bank and Jerusalem. Gazans have lived under an Israeli blockade for 16 years.

In a speech, Haniyeh highlighted threats to Jerusalem's Al-Aqsa Mosque, the continuation of the blockade on Gaza and Israeli normalization with countries in the region. "How many times have we warned you that the Palestinian people have been living in refugee camps for 75 years, and you refuse to recognise the rights of our people?"

Bodies of Israeli civilians were strewn across the streets of Sderot in southern Israel, near Gaza, surrounded by broken glass. The bodies of a man and woman were sprawled across the front seats of a car.

"I went out, I saw loads of bodies of terrorists, civilians, cars shot up. A sea of bodies, inside Sderot along the road, other places, loads of bodies," said Shlomi from Sderot.

Terrified Israelis, barricaded into safe rooms, recounted their plight by phone on live television.

Esther Borochov, who fled a dance rave party attacked by the gunmen, told Reuters she survived by playing dead in a car after the driver trying to help her escape was shot point blank.

"I couldn't move my legs," she told Reuters at the hospital. "Soldiers came and took us away to the bushes."

Senior military officers were among those killed in fighting near Gaza, the Israeli military said.

Israeli troops clashed with Hamas fighters throughout the night in some parts of southern Israel. In a briefing on social media, an Israeli army spokesperson said the situation was not fully under control.

The Israeli prime minister's office said the security cabinet had approved steps to destroy the military and governmental capabilities of Hamas and Islamic Jihad "for many years", including cutting electricity and fuel supplies and the entry of goods into Gaza.

In Gaza, black smoke, orange flashes and sparks lit the sky from explosions. Israeli drones could be heard overhead. Earlier, crowds of mourners had carried the bodies of militants through the streets, wrapped in green Hamas flags.

Gaza's dead and wounded were carried into crumbling and overcrowded hospitals with severe shortages of medical supplies and equipment. The health ministry said 232 people had been killed and at least 1,700 wounded.

Streets were deserted apart from ambulances racing to the scenes of air strikes. Israel cut the power, plunging the city into darkness.