Israeli PM Benjamin Netanyahu has vowed to "further intensify attacks on Hamas" in the Gaza Strip after talks with his defence chiefs.
He said the Palestinian militants would "pay a heavy price" for their rocket attacks on Israel.
Israel's military said Hamas had fired 72 rockets at Israeli cities on Wednesday, after dozens of air strikes were carried out in Gaza overnight.
Some 40 Palestinians are reported to have died in the recent hostilities.
The officials say half of the casualties were civilians, a number of them women and children.
Hamas has warned that all Israelis are now targets.
James Reynolds looks at where Gaza militants are aiming rockets
'Aggression'
The Israeli military said its Iron Dome missile defence system had intercepted 14 of 72 rockets fired on Wednesday, including three above Tel Aviv, three over Ashkelon and three over Ashdod.
The town of Hadera 100km (60 miles) north of Gaza, was hit with an M-302 surface-to-surface rocket, the furthest target so far reached.
The Israeli military added that it had carried out 129 air strikes in Gaza on Wednesday, bombarding tunnels, rocket launchers and what it said were Hamas command centres.
It brings to 550 the number of sites in Gaza attacked as part of "Operation Protective Edge".
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