The two powers have been exchanging barrages since Israel attacked Iran and killed many of the country’s top military leaders and scientists.

Israel's military said it was striking military targets in Tehran in its latest salvo against the Iranian capital, after issuing evacuation warnings for one neighborhood. The military said it would publish more details as the situation progresses.

Haifa and Tel Aviv struck by Iranian missiles as U.S. embassy in Israel directs government employees and families to shelter in place at home.

"American Forces are maintaining their defensive posture & that has not changed," the chief Pentagon spokesperson said.

Israel struck at the heart of Iran’s nuclear, missile and military complex early Friday, in an unprecedented attack that reportedly killed three of Iran’s most powerful figures and plunges the wider Middle East into dangerous new territory.

Stocks are down on Friday, with oil prices surging in the wake of the Israel's military strike on Iran. The S&P 500 slid 48 points, or 0.5%, to 5,998 points in early trading, while the Dow Jones Industrial Average dropped 559 points,