The military exchanges worsened between Israel and Iran overnight on Monday as strikes hit residential areas, killing and wounding civilians on both sides.

The retaliatory strikes came on Saturday, a day after Israel killed top Iranian military leaders and scientists and destroyed an aboveground nuclear enrichment plant near Natanz.

Regional tension has escalated since Friday after Israel launched coordinated airstrikes on multiple sites across Iran, including military and nuclear facilities, prompting Tehran to launch retaliatory strikes. Israeli authorities said that at least 24 people were killed and hundreds injured in Iranian missile attacks since Friday.

Trita Parsi, vice president of the Quincy Institute for Responsible Statecraft, has insisted that Israel underestimated the Iran's ability to regroup

The exchange of fire comes as talks on Iran's nuclear program in Oman between the U.S. and Iran were called off.

Israeli skies were streaked with a barrage of Iranian missiles yet again on Sunday amid a spiralling conflict between the two nations. "Iran missiles incoming, sirens heard in Jerusalem," the Israel army said,

Emergency services reported at least three killed and dozens more wounded in Israel as the fourth day of open warfare between the regional foes causes air raid sirens to be triggered

Israel and Iran have opened a new chapter in their long history of conflict. Israel launched a major attack with strikes early Friday that set off explosions in the Iranian capital of Tehran.

Follow the latest on Israel-Iran conflict Middle East markets dipped on Sunday as Israel and Iran continued attacks on defence and energy centres, with no signs of let-up from either side. The Saudi Tadawul All Share Index (TASI) closed 1.