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 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 Iranian and Israeli strikes mark the most sustained, direct attacks ever between the two rivals. Three people were killed in Israel and at least 78 in Iran, officials said.

Iranian media hailed the alleged fire, insisting it had been their target for attacks in the North, despite the majority of impacted rockets landing on residential homes.