Benjamin Netanyahu

Israelis awaited word on how Prime Minister Benjamin Netanyahu would respond to Iran's first-ever direct attack as international pressure for restraint grew amid fears of an escalation of the conflict in the Middle East.

Israel's armed forces chief has vowed to respond to Iran's unprecedented attack against the country, even after appeals for restraint poured in from world leaders fearing wider regional conflict, as the dire situation in Gaza worsens.

World oil prices sank Monday as traders bet on de-escalation in the Middle East despite a strike on Israel by key crude producer Iran.

Brent and WTI prices shed one percent while global stock markets diverged.

Israel struck war-battered Gaza overnight, Hamas and witnesses said Monday, as world leaders urged de-escalation awaiting Israel's reaction to Iran's unprecedented attack that heightened fears of wider conflict.

The United States said Sunday it will not join any Israeli counterattack on Iran, with President Joe Biden warning Prime Minister Benjamin Netanyahu to "think carefully" about any escalation.

United Nations Secretary General Antonio Guterres warned the international community Sunday against deeper descent into conflict, addressing the Security Council during a meeting over Iran's weekend attack on Israel.

"Neither the region nor the world can afford more war," Guterres said.

"The Middle East is on the brink," he told the Security Council.

Hamas has demanded a "clear written commitment" that Israel will withdraw from the Gaza Strip during the second of a three-phase ceasefire deal, a senior Egyptian official and a Hamas official said yesterday.

"We confirm our readiness to reach a deal regarding a serious exchange of prisoners between the two sides," Hamas said.

In Israel has successfully foiled an unprecedented direct attack by Iran, marking a significant escalation in tensions in the region. Sirens blared across Israel as explosions reverberated in key cities during the initial wave of Iran's drone strike, targeting locations including Tel Aviv, Jerusalem, and Dimona.

In response to Iran's unprecedented drone attack on Israel, President Joe Biden has called for an emergency meeting of the Group of Seven (G7) nations to coordinate a unified diplomatic response to Tehran's aggression.

Iran launched a significant attack on Israel, firing numerous drones and missiles, which both Tel Aviv and Tehran confirmed. The attack was purportedly in retaliation for Israel's assault on the Iranian consulate in Damascus, resulting in casualties.