By Alexander Cornwell, Parisa Hafezi and Jeff MasonTEL 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.

Russia has maintained a delicate balancing act in the Middle East for decades, trying to navigate its warm relations with Israel even as it has developed strong economic and military ties with Iran.

Israel launched a surprise attack on Iran on Friday morning that wiped out the top echelon of Iran's military command and damaged its nuclear sites, and says the campaign will continue to escalate in...