Israeli Deputy Prime Minister Shimon Peres said on Monday that Iran constitutes the principal problem of the Middle East and the center for terrorism in the region.

"Iran is the problem of the Middle East," Peres told Army Radio, adding "It is a group of people who have freed themselves from speaking the truth, who think that the means justify the ends, and who hide everything they do."

But Peres cautioned against Israel taking on the burden of confrontating Tehran, saying "the Iran issue is a global one. Let the world conduct the war."

Local newspaper Maariv reported Monday that Iran had "made a decision to do everything in order to torpedo an understanding between Israel and the Palestinians."

Since relative calmness in the West Bank and the Gaza Strip began, activists of the pro-Iranian Hezbollah "have flooded the territories with demands that terror attacks be launched," the daily said.