Benjamin Netanyahu has claimed the Israeli Air Force has taken control of the skies in Tehran and has warned people in the Iranian capital to evacuate.
The Israeli Prime Minister said “we are on a path to victory” stating that Israel is on its way to eliminating Iran’s nuclear and missile threat.
It comes after explosions rocked the Israeli cities overnight as Iran and Israel exchanged missile fire for the fourth day in a row, with no sign of abating.
At least eight people were killed after Iranian missiles struck Tel Aviv and the Israeli port city of Haifa, prompting Israel's defence minister to warn that Tehran residents would "pay the price and soon".
At least 100 more were wounded in Israel in the overnight blitz, during the wave of attacks by Tehran in retaliation for Israel's strikes targeting its nuclear and ballistic missile programmes.
The latest fatalities mean 23 people have been killed in Israel since Friday. Meanwhile, Israeli attacks in Iran have killed at least 224 people since Friday, Iran's health ministry said. Around 90% of the casualties in Iran are reported to be civilians.
The dangers of further escalation loomed over a meeting of the Group of Seven leaders in Canada, with US President Donald Trump saying he was hopeful of a deal but “sometimes they have to fight it out”.
Search and rescue operations were underway in Haifa on Monday where around 30 people were wounded, emergency authorities said, as dozens of first responders rushed to the strike zones.
Fires were seen burning at a power plant near the port, media reported.
Video footage showed several missiles over Tel Aviv and explosions could be heard there and over Jerusalem.
Several homes in a densely populated neighbourhood in Tel Aviv were destroyed in one strike, which blew out the windows of hotels and other houses just a few hundred metres from the US Embassy.
The US ambassador said the building sustained minor damage, but there were no injuries to personnel.
Guydo Tetelbaun was in his apartment in Tel Aviv when the alerts came in shortly after 4 am (1am GMT).
"As usual, we went into the (shelter) that's right across the street there. And within minutes, the door of the (shelter) blew in," the 31-year-old chef said.
"A couple of people came in bloody, all cut up. And then when we came to the apartment, after it quietened down, we saw there wasn't much of it... Walls are caved in, no more glass," he added.
"It's terrifying because it's so unknown. This could be the beginning of a long time like this, or it could get worse, or hopefully better, but it's the unknown that's the scariest.”
The predawn missiles also struck near Shuk HaCarmel, a popular market in Tel Aviv that typically draws large crowds of residents and tourists buying fresh fruit and vegetables, and to popular bars and restaurants. A residential street in nearby Petah Tikva and a school in ultra-Orthodox Jewish city Bnei Brak were also hit.
Israel said its navy intercepted eight unmanned aerial vehicles from Iran overnight but Iran appeared to pierce Israel’s advanced defence systems.
Iran's Revolutionary Guards said its latest attack employed a new method that caused Israel's multi-layered defence systems to target each other.
Israel’s Iron Dome defence system launches guided missiles that intercept incoming rockets.
"The initiatives and capabilities used in this operation, despite the comprehensive support of the United States and Western powers and the possession of the most up-to-date and newest defence technology, led to the successful and maximum hitting of the missiles on the targets in the occupied territories," it said.
Israeli officials have repeatedly said their Iron Dome defence system is not 100% and warned of tough days ahead.
Following the latest strikes on Israel, the country’s Defence Minister Israel Katz said in a statement: "The arrogant dictator of Tehran has become a cowardly murderer who targets the civilian home front in Israel to deter the IDF from continuing the attack that is collapsing his capabilities.
"The residents of Tehran will pay the price, and soon."
Meanwhile, Israel's military said on Monday morning it had struck again at command centres belonging to the Revolutionary Guard and Iran's military.
The conflict is at the top of the agenda as world leaders gather in Canada for a G7 summit, with Prime Minister Sir Keir Starmer repeatedly calling for de-escalation.
Reports circulated on Sunday that Donald Trump had vetoed a plot by Israel to assassinate the Supreme Leader of Iran.
The US president recently opposed an operation by the Israel Defence Forces to kill Ayatollah Ali Khamenei, two officials told Reuters.
Israel began the assault with a surprise attack on Friday that wiped out the top echelon of Iran's military command and damaged its nuclear sites, and says the campaign will escalate in the coming days.
Iran has vowed to "open the gates of hell" in retaliation.
