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After going unscathed for years, a knife-wielding assailant jumped on stage at an arts gathering in rural New York state and stabbed Rushdie multiple times in the neck and abdomen.
The two longstanding foes had been heading towards direct confrontation since a presumed Israeli airstrike on April 1.
Several Iranian nuclear sites are located in Isfahan province, including Natanz, centerpiece of Iran’s uranium enrichment program.
Major Middle East airlines, including Emirates Airlines, Qatar Airways and Etihad Airways, said on Sunday they would resume operation in the region after cancelling or rerouting some flights.
The threat of open warfare erupting between the arch Middle East foes and dragging in the United States has put the region on edge.
Authorities said a 7-year-old girl was critically injured.
The US president, a lifelong supporter of Israel, has resisted pressure to withhold aid or halt the shipment of weapons to the country.
More than 32,000 Palestinians have been killed in Israel's offensive in Gaza, according to Palestinian health authorities.
The health ministry in the Hamas-run territory said dozens of people were killed overnight.
In a mesmerising spectacle of glitterati and glamour, the Miss World beauty pageant in Mumbai showcased a resplendent tapestry of beauty, art and design from across the world with the rich culture and heritage of India as the backdrop.