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 in an early morning raid 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.

Smoke could be seen over the Tel Aviv skyline on Tuesday, amid reports of more Iranian strikes. It comes as Israel appeared to be expanding its air campaign on Tehran and U.S. President Donald Trump posted an ominous message warning residents of the city to evacuate.