Israel and Iran traded attacks on Saturday as their war entered a second week, while the Islamic Republic made an unusual apology to neighboring states for its "actions" looking to calm regional anger at Iranian strikes on Gulf civilian targets.

"I personally apologize to neighboring countries that were affected by Iran's actions," Iranian President Masoud Pezeshkian said, urging them not to join US-Israeli attacks on Iran.

He said Iran's temporary leadership council had agreed to suspend attacks on nearby states unless strikes on Iran originated from their territory.

Hours later, Iran's Revolutionary Guards said their drones struck a US air combat center at Al Dhafra Air Base, near Abu Dhabi, capital of the United Arab Emirates.

Drone and missiles hit Gulf states

The US-Israeli war on Iran has already spilled beyond Iran's borders, as Tehran has responded by hitting Israel and Gulf Arab states hosting US military installations and Israel has launched fresh attacks in Lebanon.

The UAE, Kuwait, Qatar, Bahrain and Saudi Arabia have all reported drone and missile attacks over the past week.

Gulf states voiced immediate outrage that their civilian infrastructure - hotels, ports and oil facilities - was struck despite having played no part in the US-Israeli attacks.

How far Pezeshkian's statement reflects a decision to back off by Iran, or if it should be read as a warning that Tehran remains ready to strike across the region, is not yet clear, with some strikes still reportedly directed at Gulf states on Saturday morning.

Iran had mended fences with its Gulf neighbors in recent years, including with former regional arch-rival Saudi Arabia - a diplomatic campaign that imploded as the Revolutionary Guards launched a blitz of drones and missiles over the past week.

Surrender demands

While Gulf states host US military bases, they had told Washington they would not allow these to be used for any attacks on Iran.

Iran's apparent strategy of maximum chaos has driven up the costs of the conflict by raising energy prices, hurting global business and logistics links and shaking trust in the stability of a critical region for the world's economy.

Pezeshkian's remarks come as diplomatic prospects for an end to hostilities appear bleak, with US President Donald Trump demanding Tehran's "unconditional surrender".

Iran's president responded by saying an unconditional surrender was a "dream that they should take to their grave."

Israeli warplanes hammered Beirut and Tehran. The death toll continued to rise Saturday with at least 1,230 people killed in Iran, more than 200 in Lebanon and around a dozen in Israel, according to officials. Six US troops were reported killed.

Russian President Vladimir Putin expressed his condolences to Pezeshkian over the civilian casualties resulting from "the armed Israeli-American aggression against Iran" and called for an immediate halt to hostilities.

'We will crush them'

Early on Saturday, the Iranian army said its navy had carried out drone strikes against targets in Israel as well as US gathering points and bases in Abu Dhabi and Kuwait, in an apparent response to the US attack on its ship IRIS Dena that killed dozens of sailors.

A spokesman for the armed forces warned that if separatist groups in the Kurdistan region took any action against Iran's territorial integrity, "we will crush them."

Israel's military carried out a rare airborne operation that dropped troops into a town in eastern Lebanon overnight, residents and Lebanese state media said on Saturday, as heavy Israeli strikes on the area left more than a dozen people dead.

Israel launched what its military described as a new wave of strikes on Tehran and Isfahan, while overnight, the Israeli military said it had carried out strikes on neighboring Lebanon that it said were aimed at Hezbollah military sites.

Who will lead Iran?

The war has roiled global markets and oil prices have hit multi-year highs with the Strait of Hormuz effectively shut. About one-fifth of global oil moves daily through the strait.

Washington will provide reinsurance for losses up to $20 billion in the Gulf region to bolster confidence for oil and gas shippers, while Trump said the US Navy could escort ships in the Gulf. 

Trump also reiterated his demand to have a say in selecting Iran's new supreme leader, a notion rejected by Iranian Ambassador to the UN Amir-Saeid Iravani.

The ambassador said the new leadership would be selected "in accordance with our constitutional procedures and solely by the will of the Iranian people - without any foreign interference."

Iran has described the conflict as an unprovoked attack and the killing of Supreme Leader Ayatollah Ali Khamenei as an assassination.