Onlookers gathered on Saturday at a central Tel Aviv residential building next door to Israel’s defense headquarters that was damaged after it took a hit from what appeared to be shrapnel from an overnight missile barrage from Iran.

Tel Aviv stocks opened lower on Sunday in the first trading session since the start of a wave of missile strikes between Israel and Iran on Friday.

Israeli citizens were ordered to head to bomb shelters on Friday night amid retaliatory missile strikes from Iran.

Residents awoke to mostly quiet streets in Tel Aviv after spending the night running back and forth to bomb shelters after Iran’s attacks on the coastal city. Some restaurants and cafes were closed, although those that remained open were full of people drinking coffee and eating pastries as normal.

Iran and Israel have launched more round of missiles at each other as the Middle East conflict escalates. Follow our live updates.

Fox News reporter Trey Yingst was standing on a balcony as short-range missiles behind him appeared to come closer before being intercepted by Israel's Iron Dome defense system. The footage of the incident preceded a night in which Israel and Iran traded fire, with explosions heard in Tel Aviv, Jerusalem and Tehran.