Israel has decided to end what it calls 'its restraint' against Palestinian militants in the Gaza Strip and said it would resume attacks against Palestinian militants who fire rockets.
A month-long ceasefire had reduced violence between the two sides, although Israel has continued to launch attacks on the West Bank and Palestinian militants have fired rockets from the Gaza Strip.
Israel has said it would abide by the broad terms of a ceasefire agreement struck a month ago.
Israeli Prime Minister Ehud Olmert's office said a directive had been given to the defence establishment to take pinpoint action against 'rocket-launching squads'.
The governing Palestinian Hamas movement said there was a risk the calm would be 'blown away by the wind' if Israel resumed what it described as assassinations.