The Anonymous hacker collective has threatened a cyber-crusade against Israel to end what it claims is a reign of terror.

In the latest round of cyber-warfare between pro-Palestinians and pro-Israeli hackers, the hacktivists have released a video on YouTube which accuses Israel of committing crimes against humanity.

"Through the use of media deception and political bribery, you have amassed the sympathies of many," an anonymous narrator says in the background.

"You claim to be democratic, yet this is far from the truth. Your only goal is to better the lives of a select few while carelessly trampling the liberties of the masses. We see through the propaganda that you circulate through the mainstream media and lobby through the political establishment."

The video talks also about the possibility of a "nuclear holocaust" perpetrated by Israel and warns Tel Aviv that it is facing a cyberwar.

"Our crusade against your reign of terror shall commence in three steps," the voice says. "Step one will be initiated after the release of this video and will be comprised of systematically removing you from the internet. Step two will be later disclosed and is already in initiation. And as for step 3, well think of this one as a present from Anonymous to you. We will not stop until the police state becomes a free state."

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The statement is the latest development in the Arab-Israel cyberwar. At the end of January, Anonymous Palestine launched a DDoS [distributed denial of service] attack against the Haaretz Hebrew website.

The cyberwar began when an elusive young Saudi Arabian hacker, who calls himself 0xOmar, released the details of 400,000 credit cards online. Israeli authorities admitted that 15,000 accounts had been hacked.

"This is the beginning of cyberwar against Israel, you are not safe any more," 0xOmar said in a post on Pastebin, urging hackers from across the Arab and Muslim world to target the websites of the Jewish state.

On Thursday, a hacker affiliated with the Anonymous collective stole US and Israeli credit card details and posted them on Pastebin, along with a list of UN resolutions condemning Israel for its hostility toward Palestinians.