The escalating conflict between Israel and Iran is likely to be high on the agenda as world leaders gather in Canada on Monday.

It follows daytime attacks from both sides, with Israeli strikes in Tehran continuing and Iran firing more missiles towards Israel.

According to Iran's health ministry, Israeli strikes killed at least 224 persons and injured over 1,400 since Friday. US President Donald Trump urged both Iran and Israel to pursue diplomacy

The period of uncertainty in the markets due to the current conflict may be prolonged and markets need to brace for it, according to experts.

An exchange of strikes on refineries and gas facilities was limited but raised the risks to an industry with broad economic impacts.

"The full strength and might of the U.S. Armed Forces will come down on you at levels never seen before," Trump warned.

The "America First" president praised his foreign policy record on Sunday while urging a deal between Iran and Israel amid escalating strikes.

Iranian news media and residents of Tehran say the damage from the latest Israeli strikes appears to be significant, with several apartment buildings badly damaged. Residents say they are hearing ambulance sirens and fire trucks racing to the scenes and rescue workers are working to find casualties in the rubble.

President Donald Trump vetoed Israel’s plan to kill Iran’s Supreme Leader Ayatollah Ali Khamenei, according to a U.S. official familiar with the matter.