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 before dawn 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.

The death toll is growing as Israel and Iran exchanged missile attacks for a third consecutive day on Sunday, and Israel is warning that worse is to come.

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