Militants fired 14 rockets at southern Israel during the morning, sending tension soaring and drawing a warning from Prime Minister Benjamin Netanyahu that unless the Islamist movement cracked down on those behind the attacks the Israeli military would step in.
"If this fire continues there are two possibilities: either Hamas stops it as the responsible authority in the area, or we will stop it," Netanyahu said in remarks broadcast on army radio.
"I strongly suggest that Hamas take into account the fact that we will not let this firing continue or expand," he told ministers at the parliamentary committee on foreign affairs and defence.
In response, the Israeli air force has hit back killing three militants.
The hike in fire from Gaza has coincided with a huge Israeli arrest operation in the West Bank aimed at finding three teenagers who disappeared on June 12.
Israel has blamed militants from Hamas for the attacks.
The Islamist movement had held power in Gaza for the past seven years but stepped down earlier this month when a unified government with the West Bank was sworn in. Despite the change, Hamas remains the de facto authority in charge of security in the Palestinian enclave.
Speaking yesterday, Foreign Minister Avigdor Lieberman reiterated calls for Israel to stage a "full (military) re-occupation" of the coastal enclave from which it pulled out all troops and settlers in 2005.
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