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Mourners lined up inside Imam Muhammad Bin Abdul Wahhab Mosque, where Haniyeh's casket, draped in a Palestinian flag, was briefly carried in to the shouts of angry mourners.
The televised statement said a rocket with a seven-kilogram warhead was used to target the residence of Hamas' political chief in the capital Tehran on Wednesday, adding it caused heavy devastation, but didn't share details of the location.
"The assassination of Ismail Haniyeh in Iran proves that we, the Palestinian people, have no protector, that our blood is cheap."
Hamas leader Ismail Haniyeh was assassinated in the Iranian capital Tehran early on Wednesday, sparking threats of revenge against Israel and fueling concern the Gaza conflict was turning into a wider Middle East war.
Qatari Prime Minister Sheikh Mohammed Bin Abdulrahman Al Thani, who is also foreign minister, later spoke with US Secretary of State Antony Blinken over the phone and discussed continuing work towards a ceasefire.
The Islamic republic's supreme leader Ayatollah Ali Khamenei will lead the prayers for Haniyeh ahead of his burial in Doha, having earlier threatened a "harsh punishment" for his killing.
Iranian President Masoud Pezeshkian said on Monday his country has "the right to respond" to any aggression, after German Chancellor Olaf Scholz urged de-escalation amid soaring tensions with Israel.
"Once again the (Benjamin) Netanyahu government has shown that it has no intention of achieving peace. If the international community does not take measures to stop Israel, our region will face much larger conflicts."