By Alexander Cornwell, Parisa Hafezi and Jeff MasonTEL AVIV/DUBAI/WASHINGTON (Reuters) - Israel and Iran kept up their attacks, killing and wounding civilians and raising concern among world leaders at a G7 meeting in Canada this week that the biggest battle between the two old enemies could lead to a broader regional conflict.

President Donald Trump vetoed an Israeli plan in recent days to kill the Iran's Supreme Leader Ayatollah Ali Khamenei, two U.S. officials told Reuters on Sunday. “Have the Iranians killed an American yet?

At least seven people were killed and more than 100 injured when an Iranian ballistic missile hit Bat Yam, just south of Tel Aviv, overnight on Sunday, domestic media reported. Other reports put the death toll at six people. Israel's police said residential buildings took a "direct hit that caused extensive damage."

Explosions have been seen over Tel Aviv and Jerusalem as the country faces yet another barrage of missiles from Iran. It comes after explosions were reported in central Tehran, as attacks continue between Iran and Israel.

Neither country is showing signs of backing down as the conflict between the regional foes raged for a third day.

Entering the third day of mutual attacks, Iran and Israel have suffered significant losses, including casualties.