Israeli Defense Forces struck the Palestinian area in Gaza on April 1, 2010.
Originally uploaded by Pan-African News Wire File Photos
Israel has warned a widescale military operation against Gaza could follow a string of air strikes, which injured three Palestinian children.
The strikes, on the western part of Gaza City, came in response to rocket attacks from Hamas-controlled Gaza into southern Israel.
Foreign Office sources expressed concern at the threat of intensifying hostilities and urged the two sides to show restraint.
Sky News Middle East correspondent Dominic Waghorn said the violence reflected a steady increase in tension in the region.
Almost 20 rockets were fired out of Gaza last month, one of them killing a Thai farm worker in southern Israel," Waghorn said.
Two Israeli soldiers were killed in a border clash a week ago, and there were air strikes overnight.
Now Israel's deputy prime minister Silvan Shalom is threatening an escalation in Israeli military activity if the rocket fire does not stop."
Hamas claims it has been trying to restrain the rocket fire among its own militants and other groups.
Israel said whether or not that is true, it still holds Hamas responsible for peace in the strip.
The latest air strikes were launched against Hamas targets, Waghorn said.
Hospital officials said the Israeli aircraft left three Palestinian children wounded by flying glass.
Witnesses and Hamas officials claimed air strikes blew up two caravans near the town of Khan Younis, while another missile was reported to have hit a cheese factory in Gaza City, setting it on fire.
Helicopters struck twice in the central refugee camp of Nusseirat, destroying a metal foundry.
An Israeli military spokesman said the attacks targeted two weapons-manufacturing plants and two arms caches.
An Israeli offensive in the Gaza Strip early last year was designed to counter Hamas rocket attacks.
Sources at the Foreign Office said: "We are concerned by today's strikes and the escalation of violence in Gaza and Southern Israel over the past week. We call on all parties to show restraint.
We encourage Israelis and Palestinians to focus efforts on negotiation and to engage urgently in US-backed proximity talks."
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