A rocket fired by Palestinian militants in Gaza has reportedly killed an Israeli woman in the southern Israeli town of Sderot.
Her death would mark the first casualty of Palestinian rocket attacks in six months.
Earlier today Israel stepped up its air attacks in the Gaza Strip, killing at least five Palestinians.
A senior Israeli cabinet minister said all Hamas leaders involved in cross-border rocket fire could be targeted.
Thousands of Hamas supporters took to the streets of Gaza City and gunmen fired into the air, vowing revenge, one day after an Israeli air strike on the home of Hamas politician Khalil al-Hayya.
Hamas said only two of the eight people killed in Sunday's attack were gunmen. Hayya was not injured, though he lost seven family members in the strike.
Earlier today, four Palestinian militants were killed in an Israeli air strike against a car carrying Islamic Jihad gunmen in the northern Gaza Strip.
The group said that the four men were members of its armed wing, the al-Quds Brigades.
The Israeli army confirmed it carried out a strike in the northern town of Jabaliya.
The Israeli military has been pounding targets in Gaza since Wednesday in response to an increase in rocket fire from the territory.
The raids have so far killed 11 civilians and 25 militants.
