An Israeli airstrike killed the commander of the military wing of Gaza's Hamas rulers, Hamas officials and Israel confirmed.
Ahmed Al-Jaabari becomes the most senior Hamas official to be killed since an Israeli invasion of Gaza four years ago.
Witnesses said Jaabari was travelling in a vehicle in Gaza City when the car exploded.
Today's bombing in Tel Aviv is reminiscent of six years ago and could mark a serious escalation in the conflict.
A truce in Gaza suits all sides but none of the groups seem interested in a long-lasting solution.
A complex system of air defences has been instrumental in protecting Israel's population from incoming rockets.