The conference saw Netanyahu wave what he alleged was wreckage of an Iranian drone shot down over Israel.
Zionist Union chief Avi Gabbay called on Prime Minister Binyamin Netanyahu to resign, saying Monday that his government suffered from a "culture of corruption".
He asked the worldwide community to keep up diplomatic pressure on the countries concerned to achieve that, but offered few other details.
Analysts are sounding the alarm on Iran's expanding control of territory across war-torn Syria, stretching as far as the Mediterranean Sea, saying the country has exploited the chaos of the Syrian civil war and capitalised on the West's narrow focus on Islamic State.
Netanyahu also slammed the Iran nuclear deal which was primarily orchestrated by the Obama administration.
India, Iran sign nine agreements, agree to stop terror forces
As part of security-related issues, both sides discussed the wars in Yemen, Syria, Iraq and Afghanistan and expressed a common resolve to counter terrorism.
The rivalry between Iran and Israel has been exacerbated in recent years by the regional instability - from the toppling of Saddam Hussein's regime in Iraq, which removed a counterweight to Iranian regional power, to the ongoing proxy war being fought between many different powers in Syria.
It was one of at least eight Israeli planes despatched in response to what Israel said was an Iranian drone's incursion into its airspace earlier on that day.
"About Netanyahu's unwise words, I should say that if they carry out the slightest unwise move against Iran, we will level Tel Aviv to the ground", Rezaei told Hezbollah's Al-Manar television station.
He said: "The US and Israeli leaders don't know Iran and don't understand the power of resistance and therefore, they continuously face defeat".
"They should be stopped and slammed with the most crippling sanctions to prevent them from continuing the development of these [nuclear] delivery systems, these guns", he said.
Israel strikes Gaza after blast wounds four soldiers
In total, the IDF attacked six targets belonging to Hamas. "We hold Hamas responsible for all aggression from Gaza", Conricus added.
In January of 2016, when implementation of the nuclear deal began, Iran had some $100 billion in frozen funds freed up.
"Because once armed with nuclear weapons, Iran's aggression will be unchecked and will threaten the entire world", he said at the Munich Security Conference, reported the Jerusalem Post. Whether one pays attentions to the threats against Israel from Iran's leaders, or the countdown to Israel's destruction "clock" in Tehran, Iran showed that its one step closer to achieving its goal.
The strikes also hit several Iranian positions in Syria.
Zarif suggested Netanyahu was deliberately raising tensions as a way to distract from his troubles at home. "We pray for peace, this is the Jewish culture, and we should do whatever we can to be there".
Iranian Foreign Minister Mohammad Javad Zarif gives a speech during the Munich Security Conference on February 18, 2018, in Munich, southern Germany.
Natural disaster hits the UK
Closer to the epicentre, James Leonard tweeted: "Wow was that an natural disaster in Swansea my house just shook". A 4.4-magnitude quake struck Swansea this afternoon, with tremors felt as far away as Manchester and Blackpool.