Israel has declared a state of emergency in the central city of Lod after rioting by Israeli Arabs, as conflict between Israeli forces and Palestinian militants intensified.
Cars were set alight and a father and daughter – both Israeli Arabs – died when a rocket from Gaza hit their car.
Palestinian militants fired hundreds of rockets deep into Israel, while Israel carried out heavy air strikes on Gaza.
At least 40 people have died in some of the worst violence in years.
Israel’s military says it is targeting militants in Gaza in response to rocket attacks on Jerusalem and other areas.
More than 1,000 rockets have been fired towards central and southern Israel by Palestinian militants since Monday evening, when hostilities suddenly escalated, the Israeli army said.
The Palestinian militants said they targeted the Israeli city of Tel Aviv after an Israeli air strike demolished a tower block in the Gaza Strip on Tuesday.
A second tower block collapsed in the territory after another Israeli strike.
Residents were warned to evacuate the 12-storey al-Jawhara Tower. However, health officials say there were still civilian deaths.
More than 200 rockets were fired at Tel Aviv and Beersheba after the tower attack, Palestinian militants said