Tehran residents tell Newsweek the city is filled with fear and uncertainty, as old memories of past conflicts resurface alongside quiet defiance.

Israel faced retaliation from Iran after launching missiles against Tehran's leadership and energy infrastructure as part of "Operation Rising Lion" this weekend. Iran's military responded with a wave of missile strikes against Israel,

Dozens of others were injured overnight across Israel, the authorities said. Israel was striking military sites in Iran and the four-day-old conflict showed no sign of slowing.

By Alexander Cornwell, Parisa Hafezi and Jeff Mason TEL AVIV/DUBAI/WASHINGTON (Reuters) -Iranian missiles struck Israel's Tel Aviv and the port city of Haifa before dawn on Monday, destroying homes and fuelling concerns among world leaders at this week's G7 meeting that the confrontation could lead to a broader regional conflict.

The war between Israel and Iran is in its fourth day, with Israel striking at military sites and Iran's nuclear program and Iran firing missiles in retaliation

In a small, tight-knit town near Haifa in northern Israel, residents here never thought they would experience such horror.

BCA Research' Matt Gertken expects Iran to act in a restrained manner for the time being to protect its nuclear program; but warns Hormuz risks remain as Tehran might escalate if it finds that U.S. forces have become directly involved.

Keep an eye out for signs of labor-market weakness, as well as the risk that rising oil prices could put more upward pressure on inflation.