Israeli Prime Minister Benjamin Netanyahu said Iran's missile attack on Israel failed and vowed retaliation.

"Iran made a big mistake tonight - and it will pay for it," he said at the outset of a political-security meeting. "The regime in Iran does not understand our determination to defend ourselves and our determination to retaliate against our enemies."

Meanwhile, Iran says its missile attack on Israel, its biggest military assault on the Jewish state, was over, barring further provocation, while Israel and the United States promised to retaliate against Tehran as fears of a wider war intensified.

Despite calls for a ceasefire from the United Nations, the United States and the European Union, fighting between Israel and Hezbollah continued on Wednesday.

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Israel renewed its bombardment of Beirut's southern suburbs, a stronghold of the Iran-backed armed Hezbollah group, with at least a dozen airstrikes against what it said were targets belonging the group.

Large plumes of smoke were seen rising from parts of the suburbs. Israel issued new evacuation orders for the area, which has largely emptied after days of heavy strikes.

Hezbollah said it confronted Israeli forces infiltrating the Lebanese town of Adaisseh early on Wednesday and forced them to retreat.

The United States warned Iran that it would face severe consequences for its ballistic missile attack on Israel on Tuesday, saying the barrage marked a significant escalation but appeared to have been thwarted.

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President Joe Biden expressed solid US support for Israel and described Iran's attack as ineffective. He said there was a discussion under way about how Israel would respond, and he planned to speak with Israeli Prime Minister Benjamin Netanyahu.

US military forces in the region helped Israel and its air defenses defeat the attack and the Biden administration was consulting with Israeli officials on next steps, said U.S. national security adviser Jake Sullivan.

"This is a significant escalation by Iran, a significant event," Sullivan told reporters at the White House. "We have made clear that there will be consequences, severe consequences, for this attack, and we will work with Israel to make that the case."