President Donald Trump on Sunday issued a stark warning to Iran against retaliating on U.S. targets in the Middle East while also predicting Israel and Iran would “soon” make a deal to end their escalating conflict.

Israel and Iran traded fresh missile strikes overnight, with both sides reporting high casualties. Iran claimed key generals were killed, while Israel said over 270 missiles had been fired since Friday.

"The full strength and might of the U.S. Armed Forces will come down on you at levels never seen before," Trump warned.

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

Israel and Iran have opened a new chapter in their long history of conflict when Israel launched a major attack with strikes early Friday on Tehran.