At least three people are killed when an Israeli missile hit their car in the northern Gaza Strip Thursday.
The Israeli military also said it had carried out aerial attacks and had destroyed 70 unmanned missile launch sites.
Earlier, two rockets fired from the Gaza Strip targeted Tel Aviv in the first attack on Israel's commercial capital in 20 years. Now there are fears that the showdown is moving towards all-out war.
On Thursday morning a Hamas rocket killed three Israelis, drawing the first blood from Israel as the Palestinian death toll rose to 19, six of them children.
In a sign of possible escalation, the Israel's armed forces spokesman said the military has been given the green light to call in up to 30,000 reserve troops.
Israeli air strike kills three Palestinians (1:06)
Nov. 15 - Israeli missile hits car and kills three Palestinians as violence escalates. Deborah Lutterbeck reports. ( Transcript )