Israel unleashed airstrikes across Iran for a third day and threatened even greater force as some Iranian missiles evaded Israeli air defenses to strike buildings in the heart of the country.

Daylight on Sunday revealed the massive destruction caused by Iranian missiles in the Israeli city of Bat Yam, near Tel Aviv. Destroyed buildings and ruined cars littered the streets.

In a dramatic escalation, Yemen’s Iran-aligned Houthis launched hypersonic ballistic missiles targeting Tel Aviv’s sensitive military and civilian sites. The coordinated assault followed Iran’s mass missile salvo,

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.

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.

Anger is mixed with worry as Iranians in the capital of Tehran have woken up to images of their country’s retaliatory attacks on Israel