Explosions have been seen over Tel Aviv and Jerusalem as the country faces yet another barrage of missiles from Iran. It comes after explosions were reported in central Tehran, as attacks continue between Iran and Israel.

Israel and Iran exchange missile attacks for a third day; nuclear sites hit, death tolls rise, airspace shut, U.S. warns Tehran against retaliation.

Most of those confirmed dead were women and children, according to the authorities, although they have yet to publicly name the victims.

At least seven people were killed and more than 100 injured when an Iranian ballistic missile hit Bat Yam, just south of Tel Aviv, overnight on Sunday, domestic media reported. Other reports put the death toll at six people. Israel's police said residential buildings took a "direct hit that caused extensive damage."

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

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.

Iran and Israel have launched more round of missiles at each other as the Middle East conflict escalates. Follow our live updates.

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.

Sirens sounded in Israel as Iran launched dozens of ballistic missiles in retaliation for Israel's strikes on its nuclear facilities.