There were no immediate reports of injuries, but video showed emergency crews extinguishing fires near what appeared to be a destroyed coach.
Sirens sounded and smoke rose over the Tel Aviv skyline amid continued reports of incoming strikes.
The Israeli military said most of the roughly 30 missiles were intercepted, though several breached defences.
Israel’s ongoing air campaign has targeted Iran’s military and nuclear infrastructure, killing more than 200 people. Iranian attacks have killed 24 in Israel and wounded more than 500.
