Stock markets across the Gulf fell on Sunday morning after Israel and Iran launched fresh attacks on each other overnight, sparking fears of a widening conflict in the Middle East.

Israel’s military said it shot down 20 drones en route to Israel on Sunday. It comes after it reported striking 80 targets in Iran overnight, including the headquarters of the Ministry of Defense and the headquarters of the Organization of Defensive Innovation and Research,

Iranian media reported that Israel struck the South Pars Gas Field in what would be the first attack on an Iranian energy site.

Experts suggest the U.S. has a strategic opportunity to leverage Iran's weakened position for a nuclear deal after Israel's targeted strikes on Iranian nuclear and military sites.

Israeli fighter jets destroyed several aboveground buildings at Natanz, Iran's main uranium enrichment facility, images show.

Israel warns "Tehran will burn" if Iran continues firing missiles, while state media say 60 people have been killed in a strike on Iran's capital.

The strikes are a sign of Israel’s shift away from restraint, containment and short wars, and toward using force to project power across the Middle East.