Prime Minister Benjamin Netanyahu said on Sunday that Israel would act against Iran, not just its allies in the Middle East, if needed, reiterating that Tehran was the world's greatest threat.

Holding a piece of what he said was an Iranian drone after its incursion into Israeli airspace earlier this month, Netanyahu told the Munich Security Conference: "Israel will not allow the regime to put a noose of terror around our neck.

"We will act if necessary not just against Iran's proxies but against Iran itself," he said.