At least three people were killed and scores were wounded during an aerial battle over Tel Aviv, as Iranian missiles rained down and Israeli rockets attempted to intercept them.

Onlookers gathered on Saturday at a central Tel Aviv residential building next door to Israel’s defense headquarters that was damaged after it took a hit from what appeared to be shrapnel from an overnight missile barrage from Iran.

Israeli citizens were ordered to head to bomb shelters on Friday night amid retaliatory missile strikes from Iran.

Residents in Tel Aviv reacted on Saturday to an Iranian retaliatory attack on Israel, expressing differing views on how the conflict was affecting their daily lives.

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

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.

Three people have been killed in Israel, according to officials and local media, with both sides saying the strikes will continue.