Israel is planning to launch a “significant retaliation” attack
 against Iran over the Iranian missile barrage that targeted Israel on 
Tuesday, which was a response to several Israeli escalations in the 
region. Israeli officials acknowledged to Axios that the situation could
 lead to a full-blown regional war, which would involve the US.
According to the Axios report, Israel could target oil 
production facilities inside Iran or other strategic sites. Israeli 
officials say that if Iran hits back, then all options will be on the 
table, including strikes on Iran’s civilian nuclear facilities.
“We have a big question mark about how the Iranians are going to 
respond to an attack, but we take into consideration the possibility 
that they would go all in, which will be a whole different ball game,” 
an Israeli official told Axios.
Other options being considered are attacks on Iran’s air defenses or 
targeted assassinations. Israel has a history of killing people inside 
Iran, including the July 31 assassination of Hamas’s political chief, 
Ismail Haniyeh.
Israel would likely need US military support to launch significant 
strikes on Iranian territory, and the US officials speaking to Axios say they are coordinating with the Biden administration. Israel wants more US support if it provokes another Iranian attack.
National Security Advisor Jake Sullivan said Tuesday that the US would work with Israel
 to ensure Iran faces “severe consequences.” President Biden has also 
said he is working with Israel on a response but said Wednesday that he wouldn’t support strikes on Iran’s nuclear facility.
“All seven of us agree that they have a right to respond, but they 
have to respond proportionally,” he said, referring to the Group of 
Seven nations. He said G7 leaders agreed to impose new sanctions on 
Iran, which will have little impact since Iran is already under so many.
Israel acknowledged on Wednesday that
 Iranian missiles made an impact on military bases but claimed there was
 no significant damage. Israel is also claiming there were no major 
casualties, with only two Israelis suffering minor injuries. One 
Palestinian was killed in the Israeli-occupied West Bank when shrapnel 
from an intercepted missile hit him.
Iran fired about 180 ballistic missiles at Israel in response to the 
Israeli assassination of Haniyeh in Tehran and the Israeli killing of 
Hezbollah Secretary-General Hassan Nasrallah and Abbas Nilforoushan, an 
IRGC commander who was killed alongside Nasrallah.