The Israel Defence Forces (IDF) claims 120 rockets fired from inside the Gaza Strip have struck Israel in less than 24 hours.
The IDF also said 24 rockets were destroyed by Israel's Iron Dome defence system before they could reach their targets.
The Israel Defence Forces (IDF) say Hamas is responsible for a barrage of rockets fired at cities inside Israel.
The IDF said it had now attacked a total of 200 "terror targets" in response to what it says are attacks by Hamas militants on Israeli citizens.
Israeli leader Benjamin Netanyahu has reportedly said a ground invasion of Gaza is one of the options available to his country's military in response to what Israel claims is Hamas targeting of Israeli civilians.
According to Reuters, a source in the Israeli Prime Minister's office quoted Mr Netanyahu as saying: "The IDF (Israel Defence Forces) must be ready to go all the way. All options are on the table, including a ground invasion."
Local people and emergency services have been sifting through the wreckage of a house destroyed in an air strike by the Israeli military on Gaza.
The Palestinian Authority says the strike, which reportedly targeted the house of a Hamas member, left six people dead and 25 injured.
The Israeli military said the strike was a response to rocket fire from Hamas militants on targets in southern Israel.
There is only a peace process at all at the moment, because it is attached to an American life support machine. The US Secretary of State John Kerry has been to the Middle East more than a dozen times in the last nine months, trying to push the sides closer towards to an agreement.
We know Mr Kerry has spoken to President Abbas expressing his dissappointment with the Hamas deal. Kerry has expressed his frustration over the situation quite openly in the last few months with what he sees as a lack of commitment on both sides to a peace agreement.
The big fear is that he will decide enough is enough and he will turn off that life support machine and widespread violence will follow.
In the wake of a Palestinian unity deal, Israeli Prime Minister Benjamin Netanyahu has said he would never negotiate with a Palestinian government "backed by a terrorist organization" committed to Israel's destruction.
"The government of Israel will not hold negotiations with a Palestinian government that is backed by Hamas, a terror organisation that calls for Israel's destruction," he is quoted as saying in an official government release.
Prime Minister Benjamin Netanyahu has said that PLO President Mahmoud Abbas "still has time" to reverse course on the unity pact with Hamas if it wants to continue peace talks with Israel.
Israel has suspended peace talks with the Palestinians in response to the Hamas and PLO unity deal, Reuters have reported.
Gaza-based Islamist group Hamas and the Palestine Liberation Organisation have announced a unity pact, President Mahmoud Abbas has said.
The move has widened divisions in US-brokered peace-talks with Israel.
The reconciliation comes after seven years of internal bickering within the Palestinian groups and raises the possibility of a unity government and national elections within six months.
However, Israel has criticised the deal, saying that President Abbas has chosen "Hamas over peace" and cancelled a session of peace talks in Jerusalem.
Posters of Ariel Sharon have been burned in celebratory scenes in Gaza and the West Bank following the death of former Israeli Prime Minister Ariel Sharon at the age of 85.
Sweet pastries were also handed out to mark the passing of Mr Sharon, who is reviled by Palestinians for his actions as both an Israeli commander and later leader of the nation.