At least three rockets hit the US embassy in Baghdad's heavily fortified Green Zone. Although no group claimed responsibility so far, fingers are pointed at Iran-backed armed groups.
Lebanon formed a new government after the Shia Hezbollah movement and its allies agreed on a cabinet that must urgently tackle the crisis.
Heavily armed Hezbollah, a militant Shia group, has also been designated a terrorist organisation by the US government.
The ministry previously only targeted the Shia organisation's military wing but has now listed the whole group after the government designated it a terrorist organisation last March.
Israeli air raids damage T-4 military airport in central province, several missiles downed, regime media reports citing a military source.
Iran hits US air base in Iraq with ballistic missiles, marking a sharp surge in the US-Iran tensions.
While the relationship may have ended bloodily in Baghdad on January 3, there were moments when Soleimani and Washington saw eye-to-eye on several issues.
The US strike on Baghdad's international airport early Friday also killed the PMU leader's personal friend and top commander in Iran's Revolutionary Guard Corps, Qasem Soleimani.
US President Donald Trump blamed Iran for insurgents storming the US embassy in the Iraqi capital and warned Tehran that it would face punishment if Americans are killed.
State TV without giving further details said one of the Israeli missiles was shot down near the Damascus suburb of Aqraba, while residents of the capital city said explosions could be heard near area.
Diab faces huge challenges in trying to form a consensual government that would also satisfy protesters who have been on the streets since mid-October, looking to do away with an entire political class they deem corrupt.
Deputy Parliament Speaker Elie Ferzli, an ally of the Iran-backed Hezbollah, nominated former education minister Hassan Diab as prime minister, indicating the Shia group and its allies had agreed on him for the position.
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