Israel and Gaza militant groups agreed a ceasefire on Saturday, a Palestinian official said, after Israel launched dozens of air strikes against the Palestinian enclave's ruling Hamas group and gunmen fired more than 100 rockets across the border.
Even as the airstrikes were being carried out, the IDF said rockets were fired toward Israel.
According to Israel Radio, residents reported hearing sounds of explosions and possible interceptions by Israel's Iron Dome system.
One rocket hit a home in the town of Sderot. "The activity we are engaged in now sends a message that Israel will not tolerate rockets, explosive devices, mortar bombs or (incendiary) kites", Katz said on Israel's Channel 12 TV.
Israel says it is defending its sovereign border and accuses Hamas of using the protests as cover for attempts to breach the border fence and attack civilians and soldiers.
It was the largest daytime attack by Israel on the coastal enclave controlled by the Hamas Islamist group since the 2014 Israel-Gaza war, an army spokesman said.
The IDF said it had also targeted a rocket launch squad and a mortar shell launcher in the northern Gaza Strip.
Earlier on Friday, an Israeli soldier was injured by a grenade thrown by a terrorists during unrest on the Gaza border.
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Hamas does not recognise Israel's right to exist but past year said it was ready to accept an interim Palestinian state limited to Gaza and the West Bank.
On Saturday, the Hamas-run health ministry in Gaza announced that a 19-year-old succumbed to his wounds sustained at the clashes a day earlier.
Gaza health officials say more than 130 Palestinians were killed and 15,000 others injured by Israeli forces during the protests.
Hamas responded with more than 200 projectiles toward Israel communities, evoking memories of the three wars the sides have waged over the past decade. The violence was held under the banner of "Identifying with Khan al-Ahmar", a West Bank Bedouin village whose planned demolition by Israel is being debated at the High Court.
The cross-border violence comes amid rising tensions in recent months over Palestinian demands to reclaim ancestral homes in what is now Israel and a call for an end to the blockade of Gaza imposed by Israel and Egypt.
In addition, the arson balloons and kites from Gaza have caused 750 fires and burned 2,600 hectares, leading to hundreds of thousands of dollars in damage, according to Israel's fire service. Humanitarian and essential supplies continue to enter Gaza.
"In the wake of events overnight we have attacked 40 terrorist targets, including the destruction of the headquarters of the Beit Lahia Battalion", said Chief IDF Spokesman Brig.Gen Ronen Manelis.
Local sources, speaking on condition of anonymity, told Arabic-language Ma'an news agency that the warplanes had attacked a site used for releasing incendiary kites and balloons into occupied territories.