Iran launched missiles at Israel. Israeli defense systems are active, and leaders warn of an escalating conflict.

Iran launched dozens of ballistic missiles toward Israel on Friday night in retaliation for Israel's surprise attack early Friday. Israel struck at the heart of the Iran's nuclear program, killing several nuclear scientists as well as high-ranking military leaders, according to Israeli officials.

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.

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.

Emergency services say ten have been killed in Israel, while Iranian state media have given little information about casualties in Iran.

The U.S. has unique power to force restraint, but with the offensive on its third day and the death toll rising, there is little sign Trump will wield his leverage.