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.
Iran is reviewing a proposed agreement with the United States to halt the war between the two countries, Iran's Mehr news reported on Tuesday, after US President Donald Trump said talks to reach a deal were continuing.
The World Health Organisation said there have been 321 confirmed cases of Ebola in the Democratic Republic of Congo outbreak and 116 suspected cases, marking a large drop in the number of suspected cases as hundreds were ruled out after investigation.
Israel kept up strikes on southern Lebanon on Tuesday, pressing its campaign against Hezbollah a day after US President Donald Trump asked Israeli Prime Minister Benjamin Netanyahu not to attack Beirut, averting further escalation in the three-month-old war.
Russian drones and missiles pounded the Ukrainian capital Kyiv and other cities early on Tuesday, killing at least 11 people and wounding more than 100, authorities said, following days of warnings about Moscow's plans for a major assault.
Two people died in central Kenya during a protest against a planned US Ebola quarantine facility, a protest organiser told Reuters on Tuesday, as President William Ruto rebuffed criticism it will endanger Kenyans.