US is calling the missile attacks in Syria and Iraq reckless.
Washington has condemned Iran over the strikes.
The Revolutionary Guards said they launched ballistic missiles that hit Israeli spy headquarters in northern Iraq.
Missiles and drone attacks also targeted Erbil near the airport.
At least four people were killed and six wounded.
The prime minister of the semi-autonomous Kurdish region says the attack is cowardly.
Tehran also targeted ISIL in Syria in retaliation for bombings in Iran earlier this month.
Al Jazeera's Mahmoud Abdelwahed has the latest in Baghdad and Dorsa Jabbari is in the studio to also discuss the latest developments.
Mohammad Marandi, a political analyst and university professor from Tehran, said everyone appears to be concerned about escalation except for Israel and its allies in the US.
“Almost from day one, the Iranians along with many others across the region have been calling for a ceasefire and the Americans and most EU countries have been refusing to support a ceasefire,” he told Al Jazeera.
“I think the strikes that the Iranians have carried out are both to target Mossad offices and terrorist organisations but also to send a message to Israelis and Americans that this escalation will hurt them more than anyone else.”
“Many of the offices of terrorist organisations and Mossad are very close to the US consulate because they feel protected, and unfortunately northern Iraq is heavily infiltrated. But Iran is also sending a message to the Americans that our missiles are very precise and we are not afraid to target these offices and bases near your buildings.”
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