BERLIN - German Chancellor Olaf Scholz called on Iran to end the cycle of escalation following Israeli strikes on Iranian military sites early on Saturday, saying restraint could pave the way for peace in the Middle East.

       "My message to Iran is clear: We cannot continue with massive reactions of escalation. This must end now. This will provide an opportunity for peaceful development in the Middle East," Scholz said in a post on social media platform X.

       Israel struck military sites in Iran early on Saturday, but its retaliation for an Iranian attack this month did not appear aimed at the country's most sensitive oil and nuclear targets after urgent calls from allies and neighbours for restraint.

       Scholz said the Israeli attack aimed to minimise casualties, creating an opportunity to avoid further escalation.

       "What is important is that there needs to be a ceasefire in Gaza and the release of the hostages. I call on all parties to do this. The same applies to Lebanon," Scholz said.

       A German diplomatic official source said on Saturday that with the calibrated Israeli response to the Iranian missile attacks, a window for diplomatic progress in the Middle East and Lebanon was opening again.

       "It was always clear that there would only be real prospects for movement after the expected Israeli strikes against Iran," the source told Reuters.

       Fears of a wider escalation in the Middle East have increased since Oct. 1 when Iran launched about 200 ballistic missiles at Israel, killing one person in the Israeli-occupied West Bank, in response to Israeli military action against Tehran's allies Hamas in Gaza and Hezbollah in Lebanon

       The worsening conflict in Lebanon, where Israel is waging a campaign against Hezbollah to stop it firing rockets into northern Israel, has raised the temperature still further. REUTERS