The head of an Israeli parliamentary committee told the Finance Ministry on Thursday to come up with a compensation plan by next week for Israelis stranded abroad during last month's war with Iran or the panel would impose one.

Hardline ideologues, who advocate for perennial enmity with the west, have railed against the possibility of re-engaging with the US and attacked Iran’s reformist president Masoud Pezeshkian, who this week suggested he remained amenable to negotiations with Washington.

Israel and Iran traded tit-for-tat attacks for 12 days in June until a US-announced ceasefire halted the fighting, but a video of a panicked crowd is unrelated to the conflict. Social media posts falsely claimed the clip showed Israelis fleeing an Iranian strike but it in fact circulated in April in reports that said the commotion was caused by a "mistaken terror attack".