In southern Israel, Palestinian rockets have caused minor damage in communities along the Gaza border.
One landed in a picnic area near a youth facility.
Israel’s military claims Hamas fired at least 45 rockets on Friday morning – after the 72-hour truce expired.
The government says it will not talk until the attacks stop.
“The negotiations in Cairo were based on a premise. And that premise was an unconditional cessation of all violence,” said Israeli government spokesman Mark Regev.
“Now when Hamas broke the ceasefire, when Hamas launched rockets and mortar shells at Israel, they broke the premise of the talks and there will not be negotiations under fire.”
Egypt is continuing efforts to try and revive the truce. It says only a few sticking points remain.
More meetings were planned on Friday, but there was no sign of any imminent deal.