The Israeli military has vowed to press ahead with its military campaign in Lebanon and said it would step up operations against Hezbollah.
"The (Iranian) regime is attempting to establish a new equation through direct attacks on Israeli territory in response to IDF operations in Dahiyeh," military spokesman Brigadier General Effie Defrin said, in a televised statement.
He added: "We struck in Dahiyeh in response to Hezbollah's relentless attacks on the communities of northern Israel.
"The IDF will continue to operate throughout Lebanon and will intensify its actions against the Hezbollah terrorist organisation."
Israel struck the outskirts of Beirut for the first time since the US announced a truce plan for Lebanon last week, and an Iranian politician threatened to retaliate, putting talks to end the wider war into new jeopardy.
Iran has long said any peace deal with the US would depend on a ceasefire also holding in Lebanon, which Israel invaded in March in pursuit of Iran-backed Hezbollah fighters who fired across the border in solidarity with Tehran.
Washington and Tehran have shown little progress in reaching a deal to end the war that President Donald Trump launched in February with a campaign of air strikes alongside Israel against Iran.
Mr Trump has repeatedly threatened to restart the strikes unless there is an agreement soon.
"We're very close to a deal, or I'm going to blow the hell out of them," Mr Trump told NBC News in an interview, broadcast to mark 100 days of the conflict.
The comments were recorded on Friday and broadcast today as Mr Trump visited his New Jersey golf course.
Trump leans on Netanyahu
Mr Trump has leaned on Israel to scale back its campaign in Lebanon to allow room for a peace deal with Iran, including rebuking Prime Minister Benjamin Netanyahu with obscenities in a phone call last week.
After the call, Mr Netanyahu called off air strikes on Beirut and agreed the latest truce plan with the Lebanese government.
But Israel has never fully halted its campaign in Lebanon, which has killed thousands of people and driven hundreds of thousands from their homes.
Hezbollah, which was not party to the truce and would be dismantled under its terms, has also continued attacks and says it will not give up its weapons unless Israel halts fighting and withdraws.
Mr Netanyahu said today's strike on Beirut's southern outskirts, a district known as Dahiyeh that has long been a Hezbollah stronghold, was ordered in response to Hezbollah firing toward Israel.
The Israeli military had earlier said it had intercepted two projectiles fired over the border.
It issued an evacuation order for the southern Lebanese city of Tyre and surrounding areas ahead of possible strikes there.
Elsewhere in Beirut, mourners held a military funeral for Brigadier General Wissam Sabra, a senior military officer killed in a strike on his vehicle in the south the previous day.
The wider war has been stalemated since the US and Israel paused their attacks on Iran in early April, with Tehran blocking most shipping through the Strait of Hormuz, the main transit route for Middle East oil.
Washington has imposed its own blockade of Iranian ports.
Though the sides have both said they are close to a preliminary agreement that would reopen the strait, they have repeatedly traded strikes, with escalations in recent days that have included attacks on nearby Arab states hosting US bases.
US forces struck Iranian coastal radar sites in Goruk and Qeshm Island, both in the Strait of Hormuz, early yesterday after shooting down drones launched by Iran that US Central Command said posed a threat to maritime traffic.
Two more Iranian attack drones that were threatening shipping in the strait were shot down, the US military said late yesterday.
Iran's Revolutionary Guards said they retaliated against US bases in Kuwait and Bahrain.
Kuwait's army said it engaged seven ballistic missiles that passed over residential areas, resulting in material damage but no casualties.
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Source: RTE
