Israel Strikes Back After Hamas Terrorist Attack, Hundreds Dead

Israel has reacted swiftly to the biggest attack on the country in 50 years, bombing areas of Gaza in retaliation for the Hamas attack that now reportedly killed more than 500 Israelis.

You see people running for cover as buildings collapse after the bombings.

Israel has declared a state of war and is swiftly retaliating for the attack that completely escaped military intel -- both in Israel and the U.S.

This dramatic video shows a reporter doing a live shot in Gaza when a bomb hit ... the sounds from the explosion unnerve her but she toughs it out and continues her reporting.

At the time of the attack, there was a crowded music festival near the Gaza Strip and you see the terror and panic as terrorists launched rockets and opened fire into the crowd

Some of the people at the festival were taken hostage by gunmen. One woman is taken away on a motorcycle as she screams, "Don't kill me! No, no no!"

Dozens, and many more, have reportedly been taken hostage and are now somewhere in the Gaza Strip, making retaliation by the Israeli military problematic. It's likely some of the hostages are in tunnels which house some of the terrorists as well as military and other artillery.

At least 1,500 people were injured in Saturday's attack and both the death toll and toll of those injured is expected to climb.

Prime Minister Benjamin Netanyahu, who said, "We are at war," vowed that Hamas "would pay a price it has never known."

The Middle East is a powder keg of violence ... it's unknown if other countries surrounding Israel will join the conflict.