Australia says Israel's attack on Qatar risks undermining any ceasefire agreement in the Middle East.

Israel struck the capital Doha on Tuesday, targeting the leadership of the Australian-designated terror group Hamas, which says five of its members were killed.

Foreign Minister Penny Wong said the latest attack risks an escalation of conflict in the region.

"This is a clear violation of Qatar's sovereignty and flies in the face of what we all want, which is a ceasefire and the return of the (Israeli) hostages (held by Hamas in Gaza)," she told Seven's Sunrise program on Wednesday.

"We don't think it was the right thing to do.

"It undermines or potentially damages the possibility of ceasefire and the release of hostages and obviously it risks escalation."

Qatar has served as a negoti

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