AFP journalists heard violent, sustained explosions in Jerusalem and Tel Aviv, and sirens sounded in several parts of the country to warn of incoming Iranian missiles.
Israeli rescuers said at least 32 people were injured in Iran’s latest missile attack.
Iran’s supreme leader Ayatollah Ali Khamenei meanwhile rejected Trump’s demand for an “unconditional surrender”, despite claims from the US leader that “Iran’s got a lot of trouble and they want to negotiate”.
“The next week is going to be very big,“ he added, without further details.
The White House said Trump would receive an intelligence briefing on Thursday, a US holiday. Top US diplomat Marco Rubio is set meet his British counterpart for talks expected to focus on the conflict.
The Wall Street Journal reported that Trump had told aides on Tuesday he had approved attack plans but was holding off to see if Iran would give up its nuclear programme.
The US president had favoured a diplomatic route to end Iran’s nuclear programme, seeking a deal to replace the 2015 agreement he tore up in his first term.
The United States is the only country with the “bunker buster” bombs needed to destroy Iran’s Fordow nuclear plant, but US military action is deeply unpopular with parts of Trump’s base.
“America should know that any military intervention will undoubtedly result in irreparable damage,“ Khamenei added.
On Thursday morning, Israel said it was carrying out fresh strikes on Tehran and other parts of Iran, and warned civilians in two villages, Arak and Khondab, to leave ahead of new attacks.
About 20 missiles had struck civilian areas in Israel, the official added.
Iran said Sunday that Israeli strikes had killed at least 224 people, including military commanders, nuclear scientists and civilians.
Israel says its surprise air campaign is aimed at preventing Iran from acquiring nuclear weapons.
Israel has maintained ambiguity on its own atomic activities, but the Stockholm International Peace Research Institute says it has 90 nuclear warheads.
Israel’s strikes have prompted mass evacuations and food and fuel shortages in Iran.
There was also a “near-total national internet blackout” in Iran on Wednesday, a London-based watchdog said, with Iran’s Fars news agency confirming heavier internet restrictions after initial curbs imposed last week.
Russian President Vladimir Putin said Thursday that a deal to guarantee both Israel’s security and Iran’s desire for a civilian nuclear programme was possible.
He said Iran had not asked Russia for military help.
But there were lingering questions about how the conflict could evolve, with Trump telling reporters that a change in Iran’s government “could happen”, a day after he had boasted that Washington could assassinate Khamenei, but would not, “at least not for now”.
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