A rocket fired from Gaza has hit a petrol station in the southern Israeli city of Ashdod, triggering a major blaze after Israeli airstrikes overnight killed six Palestinians, including one child.
The Israeli ambulance service said at least three people were seriously wounded in the attack.
One witness told Sky News' Alex Rossi he was filling up his car when air raid sirens went off.
Israeli airstrikes have killed more than 80 people, most of them civilians He said: "We heard a huge explosion and after (that) a big ball of fire and (there were) a lot of people injured.
"We were afraid the whole gas station would explode.
"We are lucky to be alive."
More than 550 rockets have been fired from Gaza into Israel since Tuesday when the Israeli army launched an operation targeting Hamas militants.
Soldiers inspect a shell thought to have been launched from Lebanon Most have been intercepted by its partly US-funded Iron Dome missile defence system and no fatalities have been reported.
For the first time two rockets were also reportedly launched from southern Lebanon which, according to Israeli army spokesman Lt. Col. Peter Lerner, struck Israel's northern border, prompting the military to respond with artillery fire.
There were no reports of injuries on either side.
Lt Col. Lerner said it was unclear whether the attack was "symbolic or something more substantial."
Five Palestinians were killed overnight in a strike on a home in Rafah It is not yet known who was responsible for the attack, although fire from Lebanon has previously been blamed on radical Palestinian factions.
Southern Lebanon is also a stronghold of the Shiite militant group Hezbollah which has battled Israel on numerous occasions.
Meanwhile Israeli airstrikes killed a further six Palestinians in the early hours of Friday morning as Operation Protective Edge entered its fourth day.
Five of them, including a seven-year-old child, died in a strike on the home of an apparent Islamist militant in Rafah.
The latest fatalities bring the total death toll to more than 80.
Israel says the operation is a defensive measure designed to halt persistent rocket attacks launched by Hamas militants who control Gaza.
The exchange of fire marks the heaviest fighting between Israel and Hamas since an eight-day battle in November 2012.
Rocket fire from Gaza aimed at Israel has increased in recent days The Israeli cabinet has said it may now send in ground troops and has authorised the call-up of as many as 40,000 reservists.
With no end to the violence in sight, US President Barack Obama has told Israeli Prime Minister Benjamin Netanyahu the US would be willing to help negotiate a truce.
Obama said he was concerned the fighting could escalate and "called for all sides to do everything they can to protect the lives of civilians", the White House said.
"The United States remains prepared to facilitate a cessation of hostilities, including a return to the November 2012 ceasefire agreement."
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