Palestinian militants said they fired 130 rockets at Tel Aviv following an Israeli airstrike that destroyed a tower block in the Gaza Strip, Reuters reported Wednesday.
Hostilities between Hamas and Israel escalated, killing at least 35 in Gaza and five in Israel. More than 200 people were injured.
The missiles were launched after the destruction of the Hanadi Tower in Gaza, which houses an office used by the political leadership of Hamas.
The airstrikes in Gaza are the most intense since the bombardment in 2014 and it showed no signs of abating. Tension had already been fueled by weeks of hostilities between demonstrators and police in the predominantly Arab part of the city.
The missile attack came after Hamas, which controls Gaza, issued an ultimatum demanding Israel to stand down its troops from the Al-Aqsa mosque compound in East Jerusalem following days of violence against Palestinians, Aljazeera reported.
Violence also broke out in the occupied West Bank, where a 26-year-old Palestinian died from Israeli gunfire during stone-throwing clashes in a refugee camp near Hebron.
The international community has called on both sides to end the escalation, which follows days of unrest in Jerusalem. As the death toll grew, Israel declined an offer by Egypt to broker an end to the violence.
"Stop the fire immediately. We are escalating towards a full-scale war. Leaders on all sides have to take the responsibility of deescalation," U.N. Middle East peace envoy Tor Wennesland said in a Twitter comment.
Israeli Prime Minister Benjamin Netanyahu said earlier that Hamas had "crossed a red line" by unleashing rockets towards Jerusalem for the first time in years.
Meanwhile, Israeli Defence Minister Benny Gantz said Israel's airstrikes were "just the beginning".
