Numerous incoming rockets from the Gaza Strip were intercepted by Israel's Iron Dome defense system over the city of Ashkelon in southern Israel on Sunday.
Trails of rockets and interceptors streak filled the sky and residents took cover near their cars at a busy intersection.
Israel said Sunday that it killed a senior Islamic Jihad commander in a crowded Gaza refugee camp, the second such targeted attack since it launched its high-stakes military offensive against the militant group just before the weekend.
Islamic Jihad has fired hundreds of rockets at Israel in response.
The risk of the cross-border fighting turning into a fully-fledged war remained high.
Another seven people were killed Sunday, bringing the Palestinian death toll to 36 since the start of the Israeli offensive Friday.
Among the dead were 11 children and four women.
The Palestinian Health Ministry said more than 311 people were wounded since Friday.