Kites have long been a big deal in Gaza. Palestinian children have previously set the world record for the most number of kites flying at one time.

Key points: Militants in Gaza have launched hundreds of burning kites into Israel

Militants in Gaza have launched hundreds of burning kites into Israel They have started more than 400 bushfires, costing $2 million in damages

They have started more than 400 bushfires, costing $2 million in damages In the last 24 hours militants also fired mortar shells into southern Israel

But now Palestinian militants in Gaza are using kites as a new weapon in the conflict with Israel. In recent weeks they've launched hundreds of burning kites into Israel to set fire to farmland and forest.

The so-called "kite war" has led to Israeli retaliation, including warning shots at the kites' organisers.

That in turn has drawn a barrage of rockets and mortar shells from Gaza into southern Israel in the past 24 hours.

Now tensions are so high many fear another all-out war.

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Israel's Foreign Ministry says at least 45 rockets were fired from Gaza overnight, targeting Israeli civilians and communities.

Israeli war planes have struck at least 25 Islamist targets in the Gaza Strip, wounding at least two men and targeting Hamas, the Islamist organisation that rules Gaza.

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Israel's Iron Dome system intercepted seven rockets before they could strike any target.

But several fell inside populated communities, and one caused damage to buildings and vehicles.

The escalation in conflict comes after months of largely peaceful protests by Gazans inside the border fence with Israel.

More than 120 Palestinians have been killed since April, and nearly 4,000 wounded by Israeli army fire.

Kite phenomenon just the latest twist

Israeli's Foreign Ministry says an estimated 7,000 hectares of land has been destroyed in the fires. ( AP: Tsafrir Abayov )

Israelis see the kites as another form of Palestinian terrorism.

But for many of the 2 million Palestinians in the Gaza Strip, it is a sign of increasing desperation at the decade-long blockade imposed by Israel and Egypt that keeps them penned into the impoverished seaside strip, unable to leave.

The Israeli Foreign Ministry says kites dangling burning cloth or embers have caused more than 400 bushfires across swathes of land, destroying an estimated 7,000 hectares of land, killing wildlife and costing about $2 million in damage.

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Balloons have also been found in southern Israel with gasoline or flammable gas inside.

Not all kites have caused fires. But those that do have caused damage not only to land or property, but also psychological stress to communities and residents, particularly in southern Israel.

Videos posted on social media show entire hillsides ablaze and burnt-out cropland.

Israel has drafted in civilian drone enthusiasts as army reservists, instructing them to fly their remote-controlled aircraft into the kites, an Israeli general said, but an effective means to stop the kites has yet to be found.

"These are terrorist acts that endanger Israeli residents living in southern Israel and damage extensive areas in Israeli territory," the military statement said of the kites and balloons.

One of the kite launchers, an 18-year-old who asked to withhold his name for fear of Israel targeting him, said the trend started with bored teens flying Palestinian flags.

"We wanted to provoke the Israelis more, so we attached a burning rag to the kite. Thanks to God's will, the thread was cut and the kite fell on the other side and started a fire. This is how we got the idea," he said, adding that a kite only cost $1 to make and a balloon just 50 cents.

"Unless there are 15 to 20 fires, we don't consider this a good day."

Fires an 'emotional' issue

But Israelis living in the kites' path say the damage is more than just financial.

"It's caused significant economic damage but more than that, it is emotional," said Itzik Ebbo, 78, a member of Kibbutz Nir Am, a collective farming community.

The fires have also caused damage to wildlife, and the ecosystem could take years to recover. ( AP: Tsafrir Abayov, file )

"These are crops we poured our hearts into. These are fields we hiked with our children and grandchildren."

The escalation in tensions in recent weeks is the worst since Israel's Operation Protective Edge in 2014, which killed more than 2000 Palestinians and about 70 Israelis.

Israel's Haaretz newspaper says the army still urges the Israeli cabinet "not to cross the line: not to try to kill the organisers, lest it trigger a general escalation on the border.

"The launch of three rockets from Gaza towards the Negev last night, in response to the Israeli strikes, shows this is also Hamas's threat against Israel: If you attack us because of the kites, we'll go back to rockets."

Some Israelis have tried a different tactic.

Residents at one kibbutz and their children recently floated colourful balloons and kites toward Gaza in what they said was a message of peace.

They've also begun a replanting drive to replace the damaged fields.

Kobi Sofer, a ranger for Israel's Nature and Parks Authority, said vegetation could rebound relatively quickly but it will likely take many years, if at all, for the entire ecosystem of plants, predators and prey to recover.

Mr Sofer says he has seen scorched porcupines, snakes, turtles, lizards and other rodents and insects, not to mention their feeding grounds.

Touring the area, the only animals in sight were birds pecking at charred carcasses.