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.

Israel identified and struck missile launchers in Iran overnight, the Israel Defense Forces said Sunday morning. "Over the past hour, the IAF completed an additional series of strikes on storage and missile launch infrastructure sties in western Iran," the IDF said in an update on the Telegram messaging app at about 8 a.m. in Israel.

Iran unleashed a barrage of missile strikes on Israeli cities early Monday, after Israel struck military targets deep inside Iran, with both sides threatening further devastation. AFP images showed gutted residential buildings in Tel Aviv and fires smouldering outside the coastal city of Haifa,