Israel said on Wednesday it had struck 25 more Hamas "military targets" in air raids in the blockaded Gaza enclave overnight in response to rocket and mortar fire, part of the worst military flare-up since a 2014 war.
"[The Israeli army] will respond with great force to these attacks, and Israel will exact a heavy price from anyone who tries to harm it, and we see Hamas as responsible for preventing these attacks against us", Netanyahu said in a statement.
Israel and Hamas are bitter enemies and have fought three wars since the Islamic militant group seized control of Gaza in 2007.
Palestinian President Mahmoud Abbas, who heads the Fatah faction that is dominant in the occupied West Bank and is a bitter rival of Hamas and Islamic Jihad, said Israel had used "vigorous aggression" against Gaza that proved it did not want peace.
Khalil al-Hayya, Hamas's deputy chief in Gaza, said in a statement that "a number of mediators intervened in the past hours and an agreement was reached to return to a ceasefire in Gaza", adding that the group was committed to it as long as Israel was.
Lieutenant-Colonel Jonathan Conricus, a spokesman for the Israel Defense Forces (IDF), said the most extensive strikes from Gaza since the 2014 war also drew "the largest IDF retaliatory attack" since that conflict.
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Ismail Radwan, a Hamas official, said the "resistance is capable of hurting the occupation and it proved this today by responding to its crimes".
"An agreement was reached to return to the (2014) ceasefire understandings in the Gaza Strip".
The Islamic Jihad attack on southern Israel came less than a day after Israel and Russian Federation reportedly reached understandings on the presence of Iranian-backed forces on the Golan Heights near the Israeli border.
They said Israel "began this round of escalation" by targeting their installations in the past two days, killing four militants. "Hamas is turning the fence into an active combat zone, and we can not tolerate attacks on Israeli civilians and military targets".
Israel has long said it will not tolerate such attacks, and its warplanes hit more than 30 targets belonging to armed groups, including a cross-border tunnel under construction, the military said.
The attacks continued throughout Tuesday, triggering dozens of rocket sirens in southern Israel and wounding five Israelis, one of them suffering moderate injuries.
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According to the Islamic Jihad group, two men were part of their armed wing, called the al-Quds Brigades. The third member succumbed to his wounds and died a few hours after the incident.
Amid global condemnation of its use of lethal force at the mass demonstrations that began on March 30, Israel said numerous dead were militants and that the army was repelling attacks on the border fence.
The Israeli military said most of the projectiles fired Tuesday were intercepted, but three soldiers were wounded.
In exchange for Hamas ending the protests, Egypt announced that it was opening the Rafah border crossing with Gaza. Other residents reported machine- gun fire from Gaza.
The United States condemned the attacks out of Gaza and called for an urgent meeting of the U.N. Security Council.
"Such attacks are unacceptable and undermine the serious efforts by the worldwide community to improve the situation in Gaza", he said.
Media reports said Palestinians had agreed on a ceasefire.
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