The foreign minister says Israel has a right to defend itself and its military response is difficult to judge from afar, as the Israeli government orders a total siege of the Gaza Strip.

Israel has declared war against Palestinian militant group Hamas after it launched a major terrorist operation, attacking a music festival and several towns near Gaza.

Speaking to ABC Radio National Breakfast, Foreign Minister Penny Wong said Australia unequivocally condemned the attack on Israel by Hamas and the indiscriminate rocket fire, targeting of civilians and taking of hostages by the group.

Senator Wong reiterated that Australia encouraged restraint, after criticism from the Opposition that her comment was inappropriate.

Shadow Foreign Minister Simon Birmingham said Israel was entirely within its right to defend itself and in doing so remove Hamas from being able to govern and being able to coordinate terror attacks.

Protesters waved Palestinian flags and chanted slogans like "f... the Jews", "free Palestine" and "shame Israel".

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