Israeli Prime Minister Binyamin Netanyahu accused Iran and its Lebanese allies Hezbollah of conduction a campaign of terrorism around the world.
Israel this week accused Iran and Hezbollah of playing a role in the suicide bombing of a bus in Bulgaria that killed several Israeli tourists.
"Iran is a global terrorism state," Netanyahu said in a statement. "It must bear the consequences."
Netanyahu said the attack in Bulgaria coincided with the date of a 1994 bombing of Jewish community center in Argentina. More than 300 people were injured and 85 people, many of whom were Jewish, died in that attack.
Esmaeil Kowsari, a lawmaker in Iran's National Security and Foreign Policy Committee, told the Iranian Students News Agency the Israeli claims were "unfounded."
"Iran has enlightened Muslims and freedom-seeking nations across the world to stand up to tyranny and especially the illogical, bullying and illegitimate regime of Israel," he said Friday.
A U.S. State Department official said the investigation into the Bulgarian bombing was ongoing.
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