Neither country is showing signs of backing down as the conflict between the regional foes raged for a third day.

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.

Tel Aviv stocks erased early losses and ended 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.

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.