The IAF struck back at rocket-launching Palestinians late Wednesday, targeting a Kassam-launching cell in Gaza that was preparing to fire on Israeli towns in the western Negev.
The IDF confirmed that the target had been hit.
Palestinians reported that one person had been killed and three wounded in the attack.
It came after the Security Cabinet approved the security establishment's recommendation that Israel respond to rocket attacks at the time and scale of its choosing. A media blackout was placed on the other details of the Security Cabinet discussion.
The Security Cabinet scrambled Defense Minister Ehud Barak to the special discussion on the bombardment of the western Negev as Gaza terrorists more than 60 rockets and mortar shells.
Meanwhile, Gaza terrorists continued to bombard southern Israel on Wednesday night, firing a Kassam rocket that landed next to a factory in the Sha'ar Hanegev region. No one was wounded and no damage was reported.
A number of Grad-type rockets were fired at Ashkelon throughout the morning. One of them struck outside the home of Benny Gueta, sending several people into shock.
"We heard the alarm and the whistling as it approached, and then we heard a big explosion," which destroyed a storage shed and shattered some of the house's windows, Gueta said.
"We can't live this way," Gueta told Israel Radio. "It's no way to live."
A house in the Sdot Negev region sustained a direct hit from a rocket just before noon on Wednesday. No one was wounded in the attack but the rocket caused extensive damage.
Earlier, two people were treated for shock when a volley of rockets was fired at Netivot, landing in an industrial zone. Several rockets landed in the agricultural areas outlying the town.
Early Wednesday morning, two rockets landed in an open area in the Sha'ar Hanegev region and another Grad-type rocket hit the coastal area south of Ashkelon. A fourth rocket failed to clear the border and landed within Hamas territory. Gaza health officials said that two Palestinian civilians were lightly hurt when the rocket landed on a house in the northern Gaza town of Beit Lahiya.
Wednesday's bombardment prompted Israel to hold up a shipment of aid scheduled to pass through to the Strip later Wednesday.
Wednesday morning's Security Cabinet meeting was scheduled in advance, but in view of the hike in rocket attacks over the last 24 hours, Barak was called in and the meeting focused on the Gaza Strip.
Most ministers voiced strong opposition to extending the truce with Hamas and demanded that Barak order the IDF to react forcefully. Kadima leader and Foreign Minister Tzipi Livni, Vice Premier Haim Ramon and Industry, Trade and Labor Minister Eli Yishai advocated a strong military response.
Responding to the incessant Kassam fire, Barak earlier announced that Israel would hold up a shipment of food and humanitarian supplies that was due to be delivered to residents of the Gaza Strip later Wednesday.
Barak had made an initial decision to allow the shipment following calls from the international community regarding the humanitarian situation in the Strip.
Basic food, medicine, gasoline and cooking gas were to be transferred to Gaza through the Karni and Kerem Shalom crossings.
Five Egyptian trucks containing humanitarian supplies were also to be allowed passage into the Strip, an initiative of Egyptian President Hosni Mubarak's wife, Suzanne Mubarak.
Meanwhile, Hamas announced Wednesday that two of its operatives were killed in a blast in the southern Gaza Strip. The terror group said that the men were killed on a "holy mission." That's the euphemism Hamas uses when gunmen are killed by explosives that go off inadvertently.
Eight mortar shells and two rockets were fired from the Gaza Strip into Israel overnight Tuesday. One of the shells hit a house in a western Negev kibbutz. There were no casualties but the house sustained damage.
On Tuesday night, IDF troops killed three Palestinian terrorists near Netiv Ha'asara, just north of Gaza.
The terrorists were spotted during an attempt to plant an explosive device near the Gaza perimeter fence, and were shot and killed in the ensuing exchange of fire.
A grenade was thrown at IDF troops by the terrorists, but no soldiers were wounded.
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