For his part, Mr Zarif called Mr Netanyahu's presentation "a cartoonish circus, which does not even deserve a response".
In a comment directed at Iran's foreign minister Mohammad Javad Zarif, who he described as a "smooth-talking mouthpiece", Mr Netanyahu held the piece aloft and said: "Mr Zarif, do you recognise this? You should, it's yours".
Faced with a war in Syria that has destabilised the region, redrawn its threat map and escalated the risk of a wider war, Israel and Saudi Arabia, which have no diplomatic relations, are finding a common enemy in Iran.
The gun is the ballistic missiles that the Iranians are developing, unchecked by the nuclear deal and undeterred by UN Security Council resolutions, he said.
Kerry dismissed Netanyahu's assertion that Iran would be on its way to having a nuclear arsenal in 10 years.
Zarif said the United States was using the conference to "revive hysteria" against Iran.
"The justice ministry made it clear in the state comptroller report that the prime minister did not take any controversial decisions", PM Netanyahu said in a statement, and that there was no "suspicion of conflict of interest". "Through its proxies, Shia militias in Iraq, the Houthis in Yemen, Hezbollah in Lebanon, Hamas in Gaza; Iran is devouring huge swathes of the Middle East", the prime minister warned.
If the US abandons the current nuclear deal it's unlikely Iran would consider a new one, Kerry said.
"Israel will not allow Iran's regime to put a noose of terror around our neck", Netanyahu said.
Furthermore, the Iranians are hiding the "casings for the bullets" in military sites, which the nuclear deal has placed out of bounds to inspectors, he said.
Netanyahu warned that Iran should "not test Israel's resolve". "There has to be a fundamental change in the Iranian regime for Iran to be treated as a normal country".
European powers including Britain, France, Germany and Russian Federation who were party to the accord have argued that Iran is complying with the agreement and are against tearing it up, something US President Donald Trump has said he favours.
The announcement by police does not mean Netanyahu will be charged.
Netanyahu's tough tone on Iran and the 2015 nuclear deal echoed that of the US national security adviser a day earlier at the conference.
"The fact that we have this newfound relationship with the Arab countries - something that. Or are you going to put it out and use the intervening time to prevent to ever catching fire again?"