ISRAELI aircraft pummelled the rocket arsenals of Gaza militants on Friday and signaled a ground invasion might be growing near as troops, tanks and armored personnel carriers massed near Israel's southern border with the Palestinian territory.

Fighting between the two sides escalated sharply with a first-ever militant attack on the Tel Aviv area, menacing Israel's heartland.

No casualties were reported, but three people died in the country's rocket-scarred south when a projectile slammed into an apartment building.

The death toll in the densely populated Palestinian territory climbed to 19, including five children according to Palestinian health officials, as waves of Israeli fighter planes and drones sent missiles hurtling down on suspected weapons stores and rocket-launching sites.

Israel and Hamas had largely observed an informal truce since Israel's devastating incursion into Gaza four years ago, but rocket fire and Israeli airstrikes on militant operations didn't halt entirely.

Troops massing on the border

At least 12 trucks were seen transporting tanks and armored personnel carriers toward Gaza late Thursday, and buses carrying soldiers headed toward the border area.

Israeli TV stations said a Gaza operation was expected on Friday, though military officials said no decision had been made.



"We will continue the attacks and we will increase the attacks, and I believe we will obtain our objectives," said Lt. Gen. Benny Gantz, Israel's military chief.



An Israeli ground offensive could be costly to both sides. In the last Gaza war, Israel devastated large areas of the territory, setting back Hamas' fighting capabilities but also paying the price of increasing diplomatic isolation because of a civilian death toll numbering in the hundreds.

Peace offering

Israel has agreed to halt a massive aerial campaign on the Gaza Strip during a visit Friday by Egyptian Prime Minister Hisham Qandil provided militants also hold their fire, an Israeli official said.

"Prime Minister (Benjamin) Netanyahu has agreed to an Egyptian request to cease fire during the visit to Gaza this morning by the Egyptian prime minister, a visit that is supposed to last some three hours," the senior official told AFP.

"In our response forwarded to the Egyptians, Israel has said that the IDF (Israeli military) will cease fire on the condition that during that period there won't be hostile fire from Gaza into Israel."

Israeli war planes carried out multiple new air strikes on the Gaza Strip, including several hits on Gaza City, early Friday, the third day of an intensive operation against Gaza militants, AFP reporters and Hamas security sources said.

Israel under fire

The Israeli Defence Force said more than 300 rockets had been fired at Israel in the past few days, with one rocket hitting the central city Rishon Lezion, about 60 km from the Gaza Strip.

The IDF said three people were killed when a rocket landed on their home.

Palestinian deaths from relentless air strikes rose to 19 overnight Thursday.

Australian Prime Minister Julia Gillard joined a growing chorus of world leaders condemning the rocket attacks and urging both sides to show restraint.

"The Government condemns the repeated rocket and mortar attacks on Israel from the Gaza Strip and calls on Hamas to cease these immediately,'' she said.

"Australia supports Israel's right to defend itself against these indiscriminate attacks. Such attacks on Israel's civilian population are utterly unacceptable."

The United States called on Egypt, Turkey and European powers to press Hamas to end the bloodshed, putting the onus on the Islamist movement to end rocket attacks on Israel.

Israeli Defence Minister Ehud Barak gave the go-ahead for 30,000 reservists to be called up, with the army saying it was "in the process of expanding the campaign''.

Among 11 Palestinians killed on Thursday were five militants, two children and a teacher at a United Nations-run school, medics and a UN official said.

Two brothers were among the other three dead but it was not immediately clear if they were militants or civilians.

In a surprise move, Egypt announced that Prime Minister Hisham Qandil would visit Gaza on Friday, as Washington urged Cairo to use its influence to try to halt the violence.

But Gaza's ruling Hamas movement remained defiant, ruling out talk of a truce even as Israeli Prime Minister Benjamin Netanyahu warned he was ready to "significantly expand'' the campaign, codenamed Operation Pillar of Defence.

"In the past 24 hours, Israel has made it clear that it will not tolerate rocket and missile attacks on its civilians. I hope that Hamas and the other terror organisations in Gaza got the message,'' he said after three Israelis were killed and 19 wounded as rockets pounded the south of the country.

"If not, Israel is prepared to take whatever action is necessary to defend our people.''

Shortly afterwards, a rocket hit the sea just south of Tel Aviv, the farthest distance ever attained by fire from Gaza.

The attack was claimed by the armed wing of Islamic Jihad, which said it had launched an Iranian-made Fajr 5 rocket at the sprawling coastal city.

The skies over southern Tel Aviv lit up like daylight after the sounding of an air raid siren.

A thump could be heard just after 7pm local time as the long range rocket hit water off the town of Jaffa.

The Israeli air defence system, the Iron Dome, kicked into gear, sending missiles into the skies to intercept any more intrusions.

Three volleys were sent into the air, flashing like fireworks as they exploded to the south of the city.

Gaza conflict escalates

In a televised press conference shortly after the sirens sounded, the military's official spokesman said that no rocket had "hit the ground."

"Despite the sirens, nothing hit the ground. The direction (of the rocket) was apparently towards the southern part of Gush Dan," Yoav Mordechai said in a televised press conference, referring to the region in and around greater Tel Aviv.

Israeli news networks said it was the first time rockets had been fired at Tel Aviv since the 1991 Gulf War, when the city was hit by Iraqi Scud missiles.

"The firing towards Gush Dan and the extent of the general (rocket) fire toward Israel is an escalation,'' Barak said in a statement.

"This escalation will have a price that the other side will have to pay,'' he warned after approving a military request for the call-up of 30,000 reservists."

Senior cabinet minister Moshe Yaalon warned on his official Twitter account that Israel was considering all options, "including the possibility that forces will be ready to enter Gaza in the event that the firing doesn't stop''.

"Whoever continues attacking us, his blood will be on his own head.''Images shown on Israel's Channel 1 television showed people lying on the ground outside the defence ministry in central Tel Aviv, their hands over their heads as the sirens wailed.

The Herald Sun saw what appeared to be four anti-rocket missiles launched from within Tel Aviv to intercept the terror rockets.

"From the 7th floor balcony of the Renassaince Hotel, I saw what appeared to be one of the anti-rocket missiles intercept a rocket, resulting in an orange flash," the Herald Sun's Damon Johnston said.

Israeli defence forces are thought to have fired the volleys of anti-missiles in response.

For the first time in decades, Tel Aviv missile warning sirens rang out about 7pm local time.

Locals said a crump was heard afterwards.

In a defiant gesture, Israelis continue to drive around the city, heading to the beach, appearing unbowed by the terror strike.

Shortly after Thursday's attack, the armed wing of the radical Islamic Jihad claimed it had fired an Iranian-made Fajr 5 rocket at the sprawling coastal city in central Israel.

"The Quds Brigades hit the occupied city of Tel Rabea (Tel Aviv) with a Fajr 5 rocket causing a large explosion to shake the city," a statement from the group said.

Tel Aviv-Jaffa lies some 60 kilometres north of the Gaza Strip. Fajr 5 rockets have a range of up to 75 kilometres

Shortly after the sirens sounded and the rocket landed in the sea, mobile phone networks across the city appeared to briefly go down, AFP correspondents said.

The incident came as Israel pressed a major air offensive against Gaza militants, running more than 150 air sorties across the territory, killing 15 people and injuring more than 150.

In response, militants have fired more than 200 rockets at Israel, killing three and injuring 19 people, three of them soldiers, police and medics said.

Pallywood: Israel accuses enemies of fake casualties

A pro-Israeli website, "HonestReporting.com" has accused BBC News of broadcasting footage of an apparently wounded Palestinian civilian being carried to safety for treatment. But shortly after the man is pictured walking around, presumably uninjured.



"HonestReporting" claims the footage is a classic case of “Pallywood,” which it describes as faked or exaggerated disaster scenes used to garner public sympathy.

US wants pressure put on Hamas to stop attacks

The United States has called on Egypt, Turkey and European powers to press Hamas to end bloodshed in Gaza, putting the onus on the Islamist movement to end rocket attacks on Israel.

The White House on Thursday said it was in close contact with Israel about its military campaign into the Hamas-controlled territory, in a conflict that officials said has killed 16 Palestinians and three Israelis.

"We've also urged those who have a degree of influence with Hamas such as Turkey and Egypt and some of our European partners to use that influence to urge Hamas to de-escalate,'' deputy national security adviser Ben Rhodes said.

"Our concern is, obviously, that Israel must be secure from these types of attacks and that, also, as this situation continues to unfold, it's only going to pose a greater threat to civilians and risk continued conflict in the region.''

The United States, Israel's closest ally, has backed Prime Minister Benjamin Netanyahu's calls for Hamas to put an end to rocket attacks into Israel in response to the military campaign.

"We strongly condemn the barrage of rocket fire from Gaza into Israel, and we regret the death and injury of innocent Israeli and Palestinian civilians caused by the ensuing violence,'' White House spokesman Jay Carney said.

"There's no justification for the violence that Hamas and other terrorist organisations are employing against the people of Israel,'' he added, saying it ``does nothing to help the Palestinians''.

He called on Hamas leaders to stop ``these cowardly acts immediately to allow the situation to de-escalate''.

State Department spokesman Mark Toner said separately of Hamas: "This is a situation that they've created by firing rockets on innocent Israeli civilians.

"You know, we obviously mourn civilian deaths on both sides. But the onus is on Hamas to stop its rocket attacks.''

Obama spoke on Wednesday by telephone to Netanyahu and urged him to ``make every effort to avoid civilian casualties'' while stressing Israel's right to defend itself from Hamas' attacks, the White House said.

Netanyahu: We will take whatever action is necessary

Earlier in the day, Prime Minister Benjamin Netanyahu announced at a televised press conference Israel will take "whatever action is necessary" to defend its citizens from Palestinian rocket attacks, adding that the army was prepared to "significantly expand the action" in Gaza.

The Israeli air force had "caused significant damage to the Fajr rockets aimed at Tel Aviv, the (surrounding) Dan region and north of that," he said, referring to Iranian-built missiles which have a range of up to 75 kilometres.

Earlier on Thursday, Defence Minister Ehud Barak, on a visit to an Iron Dome anti-missile battery near Beersheva, said the operation had "nearly completely paralysed" Hamas's arsenal of Fajr 5 rockets.

Hamas militants said they had fired several Fajr 5 rockets at Tel Aviv, but the Israeli military dismissed the claim and there were no reports of any attacks in the area.

Carr pleads for restraint, settlement

Egypt meanwhile contacted US Secretary of State Hillary Clinton during her Australian visit to ask the United States to intervene in the Gaza bloodbath.

Warning that the violence could "escalate out of control," Foreign Minister Mohammed Kamel Amr spoke with Ms Clinton during her stay in Adelaide and asked for "immediate US intervention to stop the Israeli aggression".

The call came after Egypt recalled its ambassador to Israel to protest the offensive against Hamas militants.

Israel barraged the Gaza Strip with airstrikes and shelling Wednesday and killed the Hamas military chief in a targeted strike, launching a campaign aimed at stopping rocket attacks from Islamic militants. The assault killed 10 other Palestinians, including two children and seven militants.

Mr Amr asked Mrs Clinton that the US "use what contacts it has with Israel" to stop the bloodshed

Assassination of Hamas leader sparks barrage of fire

Earlier: Israeli aircraft, tanks and naval gunboats pounded the Hamas-ruled Gaza Strip and rocket salvoes thudded into southern Israel today as terrified residents on both sides of the frontier holed up at their homes in anticipation of heavy fighting on the second day of Israel's offensive.

The operation, launched in response to several days of rocket fire from the coastal territory, was Israel's most intense attack on Gaza since its full-scale war there four years ago.

It started with the assassination on Wednesday of Hamas' top military commander, deepening the instability gripping the Mideast.

Israel's already strained relations with Egypt's new Islamist government frayed even further as Cairo recalled its ambassador in response to the Israeli military operation.

Just days earlier, Israel was drawn into Syria's civil war for the first time, firing missiles into its northern neighbour for the first time in four decades after stray mortar fire landed in Israeli-occupied Syrian territory.

The assassination of Hamas mastermind Ahmed Jabari was followed by a wave of Israeli airs trikes on more than 100 militant targets.

The air attacks continued steadily into early today, targeting the armed group's training facilities and rocket launchers.

Ten Palestinians, including two young children and seven militants, were killed on Wednesday and more than 93 were wounded.

Early today, Israel targeted a motorcycle carrying a rocket squad, killing one militant and wounding two, a Palestinian health official said.

The Israeli military had no immediate confirmation of the report.

Tank shells and naval gunfire backed up the air onslaught.

Few in the territory's largest urban area, Gaza City, came out following the call for dawn prayers, and the only vehicles plying the streets were ambulances and media cars.

One of the air strikes on Wednesday destroyed a two-storey house, sending rubble flying within a radius of about 500 meters.

It shattered windows on nearby buildings, collapsed walls, knocked down a tree and cut electricity wires and telephone cables

Wajdi Ali, a 52-year-old teacher who lives a couple of buildings down the street, said the explosion was so powerful it threw him across his living room.

"By killing Jabari, Israel has cocked the trigger and fired at itself," he said.

"No one knows when this dark chapter is going to end. I am sure that dark days await us, and them as well."

Gaza schools were ordered closed until the operation ends, and most of the territory's 1.6 million people were expected to hunker down close to home, venturing out only to buy food, fuel and other basic supplies.

Hamas announced a state of emergency in Gaza, evacuating all its security buildings and deploying its troops away from their locations.

Israeli aircraft dropped leaflets on several locations in Gaza early today, warning Gazans to stay away from Hamas, other militants and their facilities.

The Israeli military said that the Hamas fighters and other militant factions, undeterred by the air attacks, bombarded southern Israel with more than 70 rockets after the operation began.

Israel's newly deployed Iron Dome missile defense system, developed as a response to the short-range rockets from Gaza, intercepted two dozen of them, military spokeswoman Lt. Col. Avital Leibovich said.

Israel declared a state of emergency in the country's south, where more than one million Israelis live within rocket range, instructing people to remain close to fortified areas.

School was cancelled in communities within a 40km radius of Gaza.

People living in areas along the frontier were ordered to stay home from work, save for essential services, and shopping centers were shut down.

Israeli police stepped up patrols around the country, fearing Hamas could retaliate with bombing attacks far from the reaches of Gaza.

Batya Katar, a resident of Sderot, a community that has been a frequent target of rocket fire, said streets were empty there.

"People won't be outside. The minute they assassinated the Hamas military chief we knew an offensive had begun. We were waiting for it, and it's about time they did it. We have the right to live like other countries in the world."

Israel said Wednesday's air strikes were the beginning of a broader operation against the Islamic militants and that a ground invasion was a strong possibility in the coming days if Hamas didn't rein in the rocket fire.

The military said it destroyed dozens of the militants' most potent rockets - the Iranian-made Fajr, which is capable of striking Israel's Tel Aviv heartland - as well as shorter-range rockets.

In all, the military estimated Hamas had 10,000 rockets and mortars in its arsenal before the military operation began.

In a nationwide address, Prime Minister Benjamin Netanyahu said Israel could no longer stand repeated attacks on its southern towns.

Days of rocket fire have heavily disrupted life for some one million people in the region, cancelling school and forcing residents to remain indoors.

"If there is a need, the military is prepared to expand the operation. We will continue to do everything to protect our citizens," Netanyahu declared late on Wednesday.

Situation deteriorated rapidly

For the past four years, Israel and Hamas have largely observed an informal truce. But in recent weeks, the calm has unraveled in a bout of rocket attacks from Gaza and retaliatory Israeli air strikes.

From Israel's perspective, Hamas escalated the situation with two specific attacks in recent days: an explosion in a tunnel along the Israeli border and a missile attack on an Israeli military jeep that seriously wounded four soldiers.

Earlier this week, Israeli defence officials warned they were considering resuming their controversial practice of assassinating senior militants.

Wednesday's killing of Jabari was an indication they were serious. Israel has refrained from such attacks, which have drawn international condemnations, since its January 2009 offensive in Gaza.

Hamas officials had brushed off the Israeli threats, and Jabari, contrary to form, was driving in broad daylight when his vehicle was hit.

The Hamas military chief had long topped Israel's most-wanted list, blamed for masterminding a string of deadly attacks that including a bold, cross-border kidnapping of an Israeli soldier in 2006.

He also was believed to be a key player in Hamas' takeover of Gaza in 2007 from a rival Palestinian faction, the Western-backed Fatah movement.

The Israeli military released a black-and-white video of the Jabari air strike, showing a sedan moving slowly along a road before going up in flames in an explosion so powerful that a large chunk of the vehicle flew high into the air.

Crowds of people and security personnel rushed to the scene of the strike, trying to put out the fire that had engulfed the car and left it a charred shell.

Plumes of black smoke wafted into Gaza City's skies following other air strikes. Ambulance sirens blared as people ran in panic in the streets and militants fired angrily into the air.

Outside the hospital where Jabari's body was taken, thousands of Gazans chanted "Retaliation!" and "We want you to hit Tel Aviv tonight!"

"I was sitting on my bed with my grandson when suddenly the wall collapsed on both of our heads," said Mahmoud Bana, a 62-year-old man who was slightly wounded along with his 11-year-old grandson.

"We don't know what happened but we know it is going to be a few hard days ahead."

In a statement, Hamas' Prime Minister Ismail Haniyeh eulogised Jabari and vowed revenge.

"We mourn our late leader who walked the path of jihad while he knew the end, either victory or martyrdom," Haniyeh said.

"There is no fear among our people and our resistance, and we will face this vicious attack."

Advocates say targeted killings are an effective deterrent without the complications associated with a ground operation such as civilian and Israeli troop casualties, and that they also prevent future attacks by removing the masterminds.

Critics say they amount to extrajudicial killings and invite retaliation by militants and encourage them to try to assassinate Israeli leaders.

During a wave of suicide bombings against Israel a decade ago, the country employed the tactic to eliminate the upper echelon of Hamas leadership.

Hamas accused Netanyahu of launching Wednesday's operation to win votes in the January. 22 parliamentary election. But major Israeli parties, including the dovish opposition, all lined up behind Netanyahu.

Still, the region has changed greatly since the Gaza offensive four years ago. Neighboring Egypt is now governed by Hamas' ideological counterpart, the Muslim Brotherhood.

Israel and Egypt signed a peace accord in 1979. Relations, never warm, deteriorated after longtime Egyptian President Hosni Mubarak was ousted in a popular uprising last year.

The Jabari assassination threatened to further damage those fraying ties.

On its official Facebook page, Egypt's Freedom and Justice Party, which is the Muslim Brotherhood's political arm, called Jabari's assassination a "crime that requires a quick Arab and international response to stem these massacres against the besieged Palestinian people in the Gaza Strip."

It accused Israel of trying to "drag the region toward instability."

UN Secretary-General Ban Ki-moon called for calm and urged both sides to respect international humanitarian law.

On Wednesday night, the UN Security Council met behind closed doors to consider an Egyptian request for an emergency meeting on Israel's military action in Gaza.

The Palestinians asked the council to act to stop the operation.

Hamas killing has opened 'gates of hell'