Israel also mobilised thousands of forces along the Gaza border for a possible ground operation.
The army is ready for all possibilities, Prime Minister Benjamin Netanyahu said after holding a cabinet meeting today.
"The operation will expand and continue until the fire toward our towns stops and quiet returns," he said, as Israeli jets pounded Hamas positions for the second day today, bringing the death toll to 44, including women and children.
It brought to 440 the number of targets in Gaza attacked as part of "Operation Protective Edge".
More than 180 rockets hit various parts of Israel today with the Islamist Hamas, which controls the Gaza Strip since June 2007, claiming responsibility for most of them.
Rocket alert sirens sounded in Zichron Yaakov today, some 120 kms north of the Gaza Strip, signalling that Hamas has now developed the capability to hit targets anywhere in Israel.
According to the IDF, more than 225 rockets were fired at Israel since Operation Protective Edge began late on Monday with the Iron Dome interceptor system shooting down 20 while three rockets landed around Jerusalem, the BBC reported.
At least one militant was among the 17 killed today as well as six children and five women, Palestinian emergency services spokesman Ashraf al-Qudra said.
The IDF said their houses served as Hamas command centres and were used in coordinating the rocket fire on Israel.
Israeli warplanes also bombed the home of a senior Islamic Jihad militant in Beit Hanoun post-midnight, killing him and five members of his family.
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