Speaking to his Likud Party, Netanyahu disclosed that Israel's aerial freedom has been compromised by the new weaponry in Gaza, presumably smuggled into the area through tunnels connected to neighboring Egypt. He said any future peace agreement would have to include security arrangements to deal with the threat.

Israel believes that despite its military offensive and Egypt's stated goal of halting arms smuggling, Hamas has managed to restock its arsenal with longer-range missiles that can strike the heart of Israel.

Netanyahu's assessment was the first time an Israeli official has openly said Hamas also possesses anti-aircraft weaponry, though intelligence officials have privately suspected that was the case.

"The security problem is not just the new rockets that will enter the area and will threaten city centers. I don't know if you know this, but today we are struggling to fly near Gaza because they have anti-aircraft missiles there," Netanyahu said.

He warned that the missiles could also threaten air traffic at Israel's international airport. "Israel's security needs are real, the solutions have to be real, not on paper. We need to find long-term solutions that give Israel security," he said.

Netanyahu gave no evidence to support his claim, and Hamas accused the Israeli leader of spreading propaganda to justify future attacks in Gaza.

 These remarks reflect the intention of the Zionist enemy to commit more crimes and more future aggression  

Fawzi Barhoum, a Hamas spokesman

"These remarks reflect the intention of the Zionist enemy to commit more crimes and more future aggression against our people, taking advantage of the American support and the Arab silence," said Fawzi Barhoum, a Hamas spokesman in Gaza.

"We emphasize that the Palestinian people have the right to defend themselves against any future aggression and this is a national and holy duty," he added.

Barhoum refused to say whether Hamas has anti-aircraft weapons.

Hamas has fired thousands of rockets and missiles into Israel in recent years, though it has largely refrained from attacks since Israel's offensive.

On Sunday, an Israeli airstrike killed two Gaza militants who Israel says were preparing to fire rockets over the Gaza border. The Israeli military said more than 165 rockets and mortar shells have been fired at Israel from Gaza so far this year, a significant drop from the numbers before the 2009 war.

Hamas is a not a party to the newly restarted Israeli-Palestinian peace talks, which are currently deadlocked over Israel's refusal to extend restrictions on Jewish settlement construction in the West Bank.

The Palestinians say they won't negotiate if Israel resumes construction on occupied lands that the Palestinians claim for their hoped-for state. They have given the U.S. until early November, after American midterm elections, to try to resolve the dispute.

President Barack Obama hopes to broker a peace agreement within one year.

In a rare interview to an Israeli television station, Palestinian President Mahmoud Abbas appeared to make a significant gesture toward Israel. He said the Palestinians would be willing to end all historic claims against Israel if a Palestinian state is established on lands captured by Israel in the 1967 Mideast war: the West Bank, east Jerusalem and the Gaza Strip.

Once the Palestinians have established their state inside the 1967 borders, "there is another important thing to end, the conflict, and we are ready for that, to end the historic demands," Abbas told Israel's Channel 1.

Though Abbas did not elaborate, this has typically alluded to the Palestinian demand for Palestinian refugees to have a right to return to their homelands inside what is now Israel.

An "end to the conflict" has traditionally been a key Israeli demand, since Israel fears the Palestinians will press for refugee rights even after the creation of their state instead of settling in the future Palestine, thus undermining Israel's Jewish character.

Netanyahu said he heard Abbas' words, but preferred to have the conversation face-to-face.

"The interview was given seven minutes away from here. A direct conversation can promote an agreement. In order for it to promote an agreement, we have to get over an artificial obstacle," he said.