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Medics confirmed that dozens of people had been hurt at the Lag B'Omer event in northern Mount Meron, where tens of thousands of ultra-Orthodox Jews were gathered at the tomb of a 2nd-century sage for annual commemorations that include all-night prayer and dance.
The Magen David Adom ambulance service said around 20 people had life-threatening injuries.
On Twitter, Netanyahu called it a "heavy disaster" and added: "We are all praying for the wellbeing of the casualties."
The gathering had been held in defiance of health officials who had worries that crowding could pose a COVID-19 risk.
Police said on Thursday that they had arrested two people for disrupting officers' efforts to keep order at the site.