Israeli warplanes carried out intense strikes against Hamas in Gaza on Monday night after a rocket attack wounded several members of a British-Israeli family, including two infants, and destroyed their house.

Israeli jets bombed the offices of Hamas’ leader and several other facilities in what a military spokesman said was just "the beginning” of a major operation against the Islamist militant group.

There were no immediate reports of casualties in Gaza but Hamas vowed to “retaliate immediately and forcefully”, raising fears that the two sides could be hurtling back towards a full-blown conflict.

Palestinian factions reportedly began firing rockets into southern Israel on Monday night as Israeli aircraft continued their raids in Gaza.

However, Hamas said late on Monday that Egypt had brokered a ceasefire to end the fighting. Hamas authorities said schools and government buildings would be open as usual on Tuesday.

Monday's escalation was sparked by a long-range rocket fired by Hamas from Gaza towards the town of Mishmeret in central Israel at around 5.20am Monday morning, the Israeli Defence Forces (IDF) said.