Residents of an Israeli town repeatedly hit by rockets fired from Gaza on Wednesday went about their daily routines amidst tensions, some calling on the defence ministry to deter further attacks.

Gaza's Hamas rulers said Wednesday they had agreed to a cease-fire with Israel to end the largest flare-up of violence between the sides since a 2014 war.

The Israeli military struck dozens of militant sites in Gaza overnight as rocket fire continued toward southern Israeli communities into early Wednesday morning, setting off air raid sirens in the area throughout the night.

The military said it hit drone storage facilities, military compounds, and rocket and munition workshops across the Gaza Strip.

The overnight Hamas rocket fire reached the city of Netivot for the first time since the 2014 war.

The last war, in 2014, was especially devastating, with over 2,000 Palestinians killed, including hundreds of civilians, and widespread damage inflicted on Gaza's infrastructure in 50 days of fighting. Seventy-two people were killed on the Israeli side.