Israel's military confirmed its fighter jets attacked armed compounds of Hamas in the Gaza Strip Wednesday in response to incendiary balloons launched from the territory that caused fires in southern Israel.

The airstrikes are the first significant escalation between Israel and Gaza since a truce ended 11 days of cross-border conflict in May that had killed 260 people in Gaza and 13 in Israel, officials said.

According to Israel fire officials, the strikes were in retaliation to the launching of "arson balloons." These ignited 20 fires in open fields in communities near the Gaza border.

The air attacks targeted buildings used by Hamas militants for meetings, the Israel military said. It blamed Hamas for acts of violence originating in Gaza. There were no immediate reports of injuries or deaths, The Associated Press said.

"We are ready for all scenarios, including renewed fighting in the face of continued terrorist acts emanating from Gaza," Reuters quoted Israel's military as saying in a statement.

A representative from Hamas said it would continue to pursue its "brave resistance and defend their rights and sacred sites in Jerusalem," Reuters reported.

Wednesday's airstrikes were the first by Israel against Gaza since a new coalition government was formed late Sunday - forcing out Prime Minister Benjamin Netanyahu after 12 years.

The fire balloons were sent as more than a thousand flag-waving Israelis - some chanting "Death to Arabs" - swarmed into Jerusalem's Old City Tuesday.

Before Tuesday's demonstrations, Israel bolstered its deployment of Iron Dome antimissile batteries in anticipation of possible missile attacks.

The United States and the United Nations asked for restraint before the demonstrations - which the government of new Israel Prime Minister Naftali Bennett authorized, reports said.

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