Hamas chief Ismail Haniyeh and one of his bodyguards were killed in an airstrike at their residence in Tehran by Isreal, Bloomberg reported, quoting a statement from Hamas.
A probe is underway to find the cause of the incident, media reports circulated quoting Iran's Islamic Revolutionary Guard Corps. The attack was carried out on Wednesday.
Haniyeh was in Tehran for the inauguration of Iran's new President.
The assassination of the political leader follows a strike by Israel in Beirut that killed a senior Hezbollah commander.
Following the attack, oil prices surged, with Brent crude up 1.04% at $79.45 per barrel as of 8:47 a.m.
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