Iran launched a new wave of missile attacks on Israel early Monday as both countries continue to exchange strikes.

Iran and Israel exchanged missile strikes on Saturday as the conflict sparked by Israel’s attack on its regional rival’s nuclear programme entered a second day.

Iranian missiles struck Israel's Tel Aviv and the port city of Haifa before dawn on Monday, killing at least eight people and destroying homes, prompting Israel's defence minister to warn that Tehran residents would "pay the price and soon".

Iran launched missiles at Israeli cities Monday after Israeli strikes deep inside the Islamic republic, raising Israel's death toll by 11 on day four of an escalating air war.

Photos and videos showed Israel's "Iron Dome" missile defense system intercepting rockets.Israel and Iran continued to target each other with missiles and airstrikes overnight and into Saturday morning local time,

As Israeli Prime Minister Benjamin Netanyahu vowed to fight “as long as it takes,” Iran fired missiles at Israel, and Israeli warplanes attacked air defenses around Tehran.

While gas prices in Houston fell slightly earlier this month, the attacks between Israel and Iran are expected to push gas prices higher over the next week, according to Patrick De Haan, head of petroleum analysis at price-tracking site Gas Buddy.

Emergency services reported at least three people were killed and dozens more wounded in Israel as the fourth day of open warfare between the regional foes causes air raid sirens to be triggered

The price of crude oil briefly spiked at $78 a barrel on Monday morning before coming down, as traders are nervous that the conflict with Israel could hit Iran's oil exports. Iran produces about 3.3 million barrels a day, which OPEC+ producers may only just be able to replace, as Elena Casas explains.

Israel and Iran have been pummelling each other for almost four days straight and the tensions are only escalating.