A Hamas rocket has killed 3 Israelis north of the Gaza Strip.
The 3 are the first Israeli casualties in violence of the past 2 days while the Palestinian death stands at 13 after Israel targeted areas in and around Gaza city.
Egypt is condemning the offensive and has recalled its ambassador to Israel.
The Israeli ambassador has left Cairo on what authorities are calling a routine home visit and Israel said its embassy would stay open.
US urges restraint
US President Barack Obama has spoken to Israeli Prime Minister Benjamin Netanyahu and Egyptian President Mohamed Mursi.
A statement from the White House said “The President urged Prime Minister Netanyahu to make every effort to avoid civilian casualties”.
“The two agreed that Hamas needs to stop its attacks on Israel to allow the situation to de-escalate" it added.
Obama and Mursi agreed on the importance of "working to de-escalate the situation as quickly as possible" and would stay in close touch in the days ahead the White House said.
The U.N. Security Council was holding an emergency meeting late on Wednesday to discuss the Israeli strikes in the Gaza Strip.