Dozens of rockets and mortars from the Gaza Strip hit southern Israel and an Israeli airstrike killed a Palestinian militant, in an escalation of violence after a landmark visit to Gaza by Qatar's leader.
Several foreign workers in Israel were wounded in the rocket fire, and a number of militants were injured in the air attacks.
Hamas security forces were ordered to evacuate their facilities.
Crossings between Gaza and Israel were shut down following the exchanges of fire in the area.
The Israeli military said 60 rockets and mortars were fired by yesterday morning, and that Israeli aircraft struck Gaza three times. The Popular Resistance Committees said one of its members died in an airstrikes.
Asked if Israel was considering a ground operation in the Palestinian territory, Ehud Baraksaid "nothing is out of the question".
In a statement, Hamas and the Popular Resistance Committees said "these holy missions come in response to the repeated, continuous crimes of the enemy against our people, which killed four and injured 10 in the past 48 hours".
The barrage from Gaza came hours after Qatar's ruler Sheik Hamad bin Khalifa Al Thani accorded Hamas unprecedented political recognition by becoming the first head of state to visit the Palestinian territory.
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