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 Vice Premier Haim Ramon said Israel would maintain its blockade of Gaza and reduce supplies of fuel, electricity and some food in an attempt to persuade Hamas to stop the rockets.
Hamas moderately wounded a 14-year-old girl and knocked out power in parts of the rocket-scarred Israeli town of Sderot with a barrage of rockets fired at border communities Tuesday and early Wednesday.
Gaza militants said Israel responded with several airstrikes overnight, but the military confirmed only one, saying aircraft had fired at militants who had just launched rockets. Hamas said four of its men were moderately wounded.
Israel indicated that it would not let up in its attacks on Hamas.
"We need to understand there is a war in the south," Ramon told Israel Radio. "The war against Hamas has to be fought on all fronts."
Israel will continue to use the "economic weapon" against the Gaza Strip, said Ramon, a confidant of Prime Minister Ehud Olmert whose statements often reflect the prime minister's thinking.
Israel cut off virtually all shipments into Gaza three weeks ago after Hamas barraged Israel with rockets following an Israeli operation that killed 19 Gazans, most of them militants.
Hamas also took responsibility for a suicide bombing Monday in the southern Israeli town of Dimona. The Islamist group's first suicide attack in Israel in three years underscored its ability to hamper U.S.-backed efforts by moderate Palestinian President Mahmoud Abbas to reach a peace deal with Israel by the end of the year.
Israel insists on an end to violence before it implements any peace agreement, but Abbas has had no control over the Gaza Strip since Hamas seized control there from his forces in June. Monday's bombers came from the West Bank, not Gaza, giving greater weight to Israel's demand that Abbas take stronger action against militants in the West Bank, too.
Abbas on Wednesday condemned the rocket fire, but urged Israel to let supplies into Gaza.
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 "These rockets that are being fired at Israel must stop. It's pointless," he said at a news conference with Austrian Foreign Minister Ursula Plassnik. "At the same time, Israel should not use these rockets as a pretext for collective punishment on Palestinians in Gaza. Israel must always allow humanitarian supplies and other needs to be provided to Gaza."
In the West Bank city of Hebron, relatives of Shadi Zghayer and Mohammed al-Herbawi said they learned from watching Hamas' Al Aqsa TV that the two were identified as the Dimona bombers. The two Hamas members in their 20s left home early Monday, without saying where they were going, relatives said.
A farewell video of the two bearded bombers that Hamas released Wednesday showed them holding guns and standing in front of Hamas flags.
"I, the living martyr Mohammed Karim Mohammed Hijazi al-Herbawi ... sacrifice myself for the sake of God, for the sake of those who are besieged in Gaza, and in response to the crimes of the Zionist occupation," said the militant, who was wearing a green Hamas headband.
Israeli government spokesman Mark Regev said he expected the Dimona bombing to strengthen the resolve of the international community to shun Hamas.
"I hope that this public admission by Hamas of direct involvement in the deliberate targeting of innocent civilians will serve as a wake-up call to those in the international community who've had illusions as to the true nature of Hamas," Regev said Tuesday.
[Associated
Press; By KARIN LAUB]
Associated Press writers Diaa Hadid in Gaza City and Nasser Shiyoukhi in Hebron contributed to this report.
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