Hamas has vowed revenge on Israel following the funerals of suspected Palestinian militants killed by airstrikes.
They said they had fired dozens of rockets into southern Israeli towns while Israel has called up Army reservists.
ITV News Middle East correspondent Geraint Vincent reports.
It's been an emotionally exhausting day in Israel and Gaza as hopes for peace were raised then dashed then raised then dashed again.
In the court of international opinion, this is how Israel wins a battle and still manages to lose the war.
Until the Israelis and the Palestinians find a way of resolving the underlining conflict this will not be more than a pause.