In Gaza five people have been killed and three wounded in Israeli airstrikes launched in retaliation for a Palestinian rocket attack on an Israeli school bus.
The Israeli military said it had killed two militants from the Islamist group Hamas and hospital sources said three Palestinian civilians died and three were injured.
An Israeli cabinet minister said that the strikes would continue and were designed to make people regret firing on Israel.
The strikes hit the town of Khan Yunis knocking out electricity supplies in some parts of the territory. Hamas facilities and smuggling tunnels were also damaged.
Two people were injured in the school bus attack; the driver and a 13-year old boy who remains in intensive care. Hamas admitted responsibility for the attack.
UN Secretary General Ban Ki Moon has condemned the violence and expressed concern over the civilian casualties.