Gaza militants fired at least 10 rockets towards Israel after an Israeli airstrike destroyed the offices of Hamas political leader Ismail Haniyeh, as air raid sirens wailed across southern Israel.
Haaretz reported that a rocket had hit a home in Sderot as the family hid in a bomb shelter.
Israeli media reported that at least 10 missiles were fired towards the southern Israeli town. There are no immediate reports of casualties.
The latest escalation of violence began when a rocket fired from Gaza struck a home in central Israel, wounding seven people.
Israel has vowed to respond "forcefully," raising the prospect of a fourth war between Israel and Gaza's militant Hamas rulers. However, there were reports that Egypt has brokered a ceasefire.
