President Donald Trump urged Tehran’s 9.5 million residents to flee as tension between Iran and Israel builds. Trump is expected to hold urgent talks with his national security team.

The Israeli military said Monday that it can now fly over the country's capital, Tehran, without facing major resistance after crippling Iran’s air defenses in recent strikes, enabling Israel to hit an expanding range of targets with relative ease.

The conflict between Israel and Iran has rapidly escalated since Israel launched a series of air strikes against key Iranian targets.

(Reuters) -President Donald Trump on Monday urged everyone to immediately evacuate Tehran, and reiterated that Iran should have signed a nuclear deal with the United States. "IRAN CAN NOT HAVE A NUCLEAR WEAPON. I said it over and over again! Everyone should immediately evacuate Tehran!" he said in a post on Truth Social.

In a city under attack, residents encounter gas stations that are closing because there is no fuel, and disruptions to internet and phone service.

Trump's evacuation comments in the early hours of Tuesday were reportedly followed by explosions and heavy air defence fire in Tehran. Iran launched two waves of missiles in response to the Israeli attacks, setting off air raid alerts in parts of central and northern Israel.

Israel and Iran have begun a new round of attacks, as the conflict between the two heavily armed rivals enters its fourth day.

India's benchmark indexes fell on Tuesday as investors stayed on edge after U.S. President Donald Trump urged Iranians to evacuate Tehran, stoking fears of a broader regional conflict amid ongoing Israel-Iran hostilities.

Follow all the latest U.S. market action for Tuesday here as stocks sit just shy of record highs despite turmoil in the Middle East and the Federal Reserve begins its two-day policy meeting.