At least three people were killed and scores were wounded during an aerial battle over Tel Aviv, as Iranian missiles rained down and Israeli rockets attempted to intercept them.

Missiles and projectiles were seen in the skies over Jerusalem and Tel Aviv early on Sunday as Tehran unleashed a fresh attack on Israel which in turn launched an expanded assault on Iran.

Daylight on Sunday revealed the massive destruction caused by Iranian missiles in the Israeli city of Bat Yam, near Tel Aviv. Destroyed buildings and ruined cars littered the streets.

Iran launched missiles at Israel. Israeli defense systems are active, and leaders warn of an escalating conflict.

Tel Aviv stocks erased morning losses and moved nearly 1% higher on Sunday in the first trading session since the start of a wave of missile strikes between Israel and Iran on Friday, as Israel and its economy attempt to remain as open as possible.

In a dramatic escalation, Yemen’s Iran-aligned Houthis launched hypersonic ballistic missiles targeting Tel Aviv’s sensitive military and civilian sites. The coordinated assault followed Iran’s mass missile salvo,

Fox News reporter Trey Yingst was standing on a balcony as short-range missiles behind him appeared to come closer before being intercepted by Israel's Iron Dome defense system. The footage of the incident preceded a night in which Israel and Iran traded fire, with explosions heard in Tel Aviv, Jerusalem and Tehran.

Missile alerts continue in Tel Aviv as five people are reported injured by falling debris, according to Israeli emergency officials. NBC News' Matt Bradley says the smell of dust is in the air as anxiety grips the city amid ongoing Iranian retaliation following Israel’s strike on nuclear facilities.

Iran hits sites across Israel causing a number of deaths - as Israeli defence minister says ‘Tehran is burning’