Iran and Israel continued on Sunday their aerial attacks, which began Friday with a series of Israeli strikes on Iran.

Israel bombarded Tehran, the Iranian capital, with a new wave of strikes on Sunday afternoon, as both sides dismissed international calls to de-escalate the conflict and warned of more to come in a clash that is rapidly expanding in scope and intensity.

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,

Oil prices climbed on Monday, extending Friday's rally, as renewed strikes by Israel and Iran over the weekend increased concerns that the battle could widen across the region and significantly disrupt oil exports from the Middle East.

The markets have mostly shrugged off Russia's invasion of Ukraine and the Israel-Hamas war. But Israel's conflict with Iran is still in its early days.

Jonathan Conricus, a former IDF spokesperson, says Iran is "the weakest that I've ever seen it" after Israel's launch of Operation Rising Lion.

Israel and Iran launched fresh attacks, killing and wounding civilians and raising concerns of a broader regional conflict.

An exchange of strikes on refineries and gas facilities was limited but raised the risks to an industry with broad economic impacts.