Tel Aviv stocks erased morning losses and moved nearly 1% higher on Sunday in the first trading session since the start of a wave of missile strikes between Israel and Iran on Friday, as Israel and its economy attempt to remain as open as possible.

Israel unleashed a punishing barrage of strikes targeting the capital Tehran Sunday, after Prime Minister Benjamin Netanyahu vowed to make Iran pay "a very heavy price" for killing civilians, on the third day of fierce fighting.

Israel unleashed airstrikes across Iran for a third day on Sunday and threatened even greater force as some Iranian missiles evaded Israeli air defenses to strike buildings in the heart of the

Onlookers gathered on Saturday at a central Tel Aviv residential building next door to Israel’s defense headquarters that was damaged after it took a hit from what appeared to be shrapnel from an overnight missile barrage from Iran.

The UK is advising Britons against all travel to Israel amid the escalating conflict with Iran.On Sunday, the government updated its travel guidance for Israel from “amber” to “red” - on the same level as Iran.

Air raid sirens and booms rang out in Jerusalem and Tel Aviv early Sunday, AFP journalists said, as Israel and Iran exchanged fire for a third day. Israel’s military wrote in a post on X that millions of Israelis were “running for shelter as sirens sound” in dozens of cities and communities around the country.

Israeli citizens were ordered to head to bomb shelters on Friday night amid retaliatory missile strikes from Iran.