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The exchange, after Tehran's first such strike on Israel in two months, threatened to further complicate efforts to broker a peace deal aimed at ending the war.
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Oil prices jumped and stocks plunged after Iran fired missiles at Israel, raising doubts about the future of fragile cease-fire in the Middle East.
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The Israeli military announced that it is intercepting ballistic missiles from Iran for the first time since a ceasefire was announced. NBC News' Courtney Kube and Matt Bradley report.
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