The Israeli military said it was investigating an apparent drone attack that hit central Tel Aviv in the early hours of Friday but which did not trigger the air raid sirens.
The explosion occurred hours after the Israeli military confirmed it had killed a senior commander of the Iran-backed Hezbollah group in southern Lebanon.
"An initial inquiry indicates that the explosion in Tel Aviv was caused by the falling of an aerial target, and no sirens were activated. The incident is under thorough review," the Israeli military said in a statement.
It said air patrols had been increased to protect Israeli airspace but said it had not ordered new civil defence measures.
Police said the body of a man was found in an apartment close to the explosion and said the circumstances were being investigated.
Footage from the site showed broken glass strewn across the city pavements as crowds of onlookers gathered near a building bearing blast marks. The site was sealed off by police tape.
The military spokesman of Yemen's Houthis said the group would reveal details about a military operation that targeted Tel Aviv in a statement on social media.
Hezbollah and the Houthis have stepped up attacks against Israel and Western targets, saying they are acting in solidarity with the Palestinians after Israel invaded the Gaza Strip following an attack by Hamas on southern Israel.
Spain and Portugal switched their power back on after the worst blackout in their history, though authorities offered little explanation for what had caused it or how they would prevent it from happening again.
In the chaotic first 100 days since President Donald Trump returned to office, he has waged an often unpredictable campaign that has upended parts of the rules-based world order that Washington helped build from the ashes of World War II.
Canadian Prime Minister Mark Carney's Liberals retained power in the country's election on Monday, but fell short of the majority government he had wanted to help him negotiate tariffs with US President Donald Trump.
A huge power outage hit large parts of Spain and Portugal on Monday, paralysing traffic, grounding flights, trapping people in elevators and leaving power operators scrambling to restore power to millions of homes and businesses.
Russian President Vladimir Putin on Monday declared a three-day ceasefire in the war with Ukraine next month to mark the 80th anniversary of the victory of the Soviet Union and its allies in World War II.
Canadian prosecutors have charged a 30-year-old Vancouver resident with murder for killing at least 11 people and injuring dozens after he rammed an SUV through a crowd at a Filipino community festival in the western Canadian city.