Anger and grief shook Tel Aviv's normally thriving gay community yesterday after a gunman shot two people dead and wounded 11 others in the worst-ever attack against homosexuals in Israel.

The shooting spree late on Saturday night terrorised a haven within a haven for Israeli gay people, leaving it with a sudden sense of vulnerability.

It came in the downtown area of Tel Aviv, Israel's most liberal city which hosts plentiful gay bars and cafes as well as a community centre sponsored by the municipality. Even worse, it struck what was thought of as a safe space for gay teens, many of whom were still concealing their sexual identity.

One of the dead was Nir Katz (26), a counsellor and web designer who was regarded as a role model for the youths and was remembered yesterday for giving his time and money to help them.

The other was a sixteen year-old-girl, Liz Tarabushi. Youths as young as fourteen were said to have attended the club. The shooter was masked. He pulled out a pistol and opened fire on youths, then concealed his weapon and fled the scene on foot, according to police.

“We are in complete shock,” said Itzik Tsror, spokesman of the League for the Defense of the Rights of Homosexuals, Lesbians, Bisexuals and Transgenders. “We are worried that people will try to copy this act.” At the league's offices, people wandered in with tears in their eyes and embraced one another, terming the shooting “a massacre.”

Hundreds of police were scouring Tel Aviv in a manhunt, while prime minister Binyamin Netanyahu, opposition leader Tzipi Livni and Israel's chief rabbis all condemned the attack.

Gay community leaders termed it a “hate crime” and linked it to anti-gay incitement, including among ultra-orthodox politicians. But police declined to specify a motive, saying only that they were investigating and clamping a gag order on details of the probe.

Conditions for gay Israelis have improved in many ways over recent years. Gay couples have been recognised by the courts, gay soldiers serve openly in the military and openly gay musicians and actors are among the country's most popular.

Rainbow flags are often seen flying from apartment windows in Tel Aviv.