Israeli Prime Minister Benjamin Netanyahu has blamed Iran for a terror attack Monday that took the life a mother of three children near Hebron.

“We are in the midst of a terrorist assault encouraged, directed and financed by Iran and its proxies,” Netanyahu said as he visited the site of the attack.

A spokesperson for the Islamist Hamas group, backed by Iran that governs Gaza, Hazem Qassem, praised the attack and said it was a response to Israel's ongoing assaults on Palestinians.

Netanyahu was briefed by officials on the deadly attack and received an intelligence update on the area, especially Iranian efforts in the region and the intensive operational activity of the security forces in Judea and Samaria.

Israel, which was already hunting for a Palestinian suspected of shooting and killing two Israelis on Saturday, said it saw involvement from arch-foe Iran in the recent escalation of violence.

"The significant change that is taking place on the ground, it is related to Iranian funding and to the proliferation of weapons under the Iranian directive. Iran seeks every means to harm the citizens of Israel," said Defense Minister Yoav Gallant. He did not give any other details.

Since March when Iran reached an agreement to re-establish ties with Saudi Arabia it has intensified calls on Palestinians to attack Israeli targets

“It must be understood that a considerable portion of this terrorist wave comes as a result of outside guidance. We are using means, and we will use yet more, both offensive and defensive, to settle accounts with the murderers and those who dispatch them, near and far,” Netanyahu said.