Iran said an Israeli attack targeted military sites in the Islamic republic on Saturday, killing two soldiers, almost a month after Israel vowed to avenge a missile barrage that raised fears of a full-scale Middle East war. The Israeli military said its retaliatory air strikes hit Iran's missile manufacturing facilities, missile installations and other systems in several regions. It warned Iran it would "pay a heavy price" if it responded.

Iran confirmed an Israeli attack had targeted military sites in Tehran province surrounding the capital, and other parts of the country, saying it caused "limited damage". The armed forces said later two soldiers were killed in the strikes. Israel had vowed to retaliate against Iran for its October 1 barrage of 200 missiles, the second-ever direct attack by Iran on its arch-foe.

Most of those missiles were intercepted but one person was killed. The Israeli retaliation drew condemnation from Hamas and Saudi Arabia, which warned against further escalation. Israel is already engaged in combat on two fronts, a full-on war against Iran-backed Hezbollah in Lebanon since last month, and in Gaza, where Israel has fought Palestinian Hamas militants for more than a year and the United Nations warned the "darkest moment" of that conflict was unfolding.

"Based on intelligence, IAF (air force) aircraft struck missile manufacturing facilities used to produce the missiles that Iran fired at the State of Israel over the last year," Israel's military said i.