While Iran is likely to retaliate in some capacity — probably by continuing its trend of using proxy fighters to hit US or Israeli assets abroad — it has neither the military might nor political strength to enter its people into a full-scale war with the West. Israel and its allies have also already transported their citizens to safe zones and prepared their defense mechanisms, which means Iran has two choices — play "small ball" or make a larger move and risk being crushed by a Western counterattack.
Iran knows full well that it can't go to war with Israel and the US, but that doesn't mean that its regional neighbors are going to help the West instigate further escalation. Gulf states such as Saudi Arabia, Kuwait, and the UAE are currently working to keep the US from launching any counterattacks from its bases located in their countries. The entire region has no desire for war, but Israel deserves to face an equal response without drawing the rest of the world into this mess.