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Iran signals no plans to retaliate after Israel attack; man with ‘explosives vest’ arrested at Iranian consulate

Israel launches attack on Iranian soil on Friday, sources said, in the latest tit-for-tat exchange between the two arch foesSenior Iranian official says: ‘The foreign source of the incident has not been confirmed’IAEA says said there was no damage to Iran's nuclear sitesAirlines scramble to change routes in the area One source told Reuters the U.S. was not involved but was notified by Israel before the attack

Iranian worshippers chant slogans during an anti-Israeli gathering after their Friday prayer in Tehran. AP

Humeyra Pamuk, Phil Stewart and Parisa Hafezi

Explosions echoed over an Iranian city on Friday in what sources described as an Israeli attack, but Tehran played down the incident and indicated it had no plans for retaliation - a response that appeared gauged towards averting region-wide war.

The limited scale of the attack and Iran's muted response appeared to signal a successful effort by diplomats who have been working to avert all-out war since an Iranian drone and missile attack on Israel last Saturday.