Israel and Iran have begun a new round of attacks, as the conflict between the two heavily armed rivals enters its fourth day.

It follows daytime attacks from both sides, with Israeli strikes in Tehran continuing and Iran firing more missiles towards Israel.

Israel's conflict with Iran represents far more than another Middle Eastern crisis—it marks the emergence of a dangerous new chapter in nuclear rivalries that has the potential to reshape global proliferation risks for decades to come.

Iranian news media and residents of Tehran say the damage from the latest Israeli strikes appears to be significant, with several apartment buildings badly damaged. Residents say they are hearing ambulance sirens and fire trucks racing to the scenes and rescue workers are working to find casualties in the rubble.

"The full strength and might of the U.S. Armed Forces will come down on you at levels never seen before," Trump warned.

Global investors may be underpricing the impact of a conflict between Israel and Iran, market watchers warned on Monday, as stocks rallied despite escalating warfare in the Middle East. The two regional powers continued trading fire on Monday, marking the fourth consecutive day of fighting since Israel launched airstrikes against Iran last week.

As tensions escalate between Iran and Israel, the spotlight now turns to Pakistan’s controversial stance. Iranian Security Council member Mohsen Rezaei claimed that Pakistan may support Iran with nuclear weapons if Israel attempts a nuclear strike.

The escalating conflict between Israel and Iran is likely to loom large as world leaders gather in Canada for a G7 meeting on Monday.