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 on Monday, destroying homes and fuelling concerns among world leaders at this week's G7 meeting that the battle between the two old enemies could lead to a broader regional conflict.

A rare daytime missile barrage on Tel Aviv forces millions into shelters as Israeli forces retaliate against Iran's missile-launching capabilities.

Air raid sirens could be heard across the Israeli city of Tel Aviv in the early hours of Tuesday morning, as Iranian media reported that military forces had launched missiles at Israel.

In Lebanon, which is still reeling from last year’s war between Israel and the Hezbollah militant group, videos making the rounds on social media have shown revelers dancing and drinking on rooftops while projectiles flash across the sky in the background.

A new wave of missiles launched from Iran were seen in the skies over Tel Aviv, early on Sunday. Sirens sounded in Jersualem and Tel Aviv, as the incoming barrage was intercepted.

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.

Video verified by CNN captures the dramatic moment a missile struck in vicinity of the Kirya, an area of Tel Aviv that’s home to an urban military base housing Israel’s Defense Forces.