About 50 improvised Qassam rockets have been fired into southern Israel over the past two days, in an apparent attempt by fighters from the rival Fatah and Hamas groups to drag Israel into the conflict.
"Prime Minister [Ehud] Olmert, Defense Minister [Amir] Peretz and Foreign Minister [Tzipi] Livni have authorized the army and security forces to carry out a series of operations against those who are firing Qassam rockets," said a statement issued by the government press service.
No details have been provided as to what actions Israel intends to take. Despite threats from the Israeli government and a unilateral truce declared Wednesday by Islamic radical group Hamas, Palestinian militants continued their rocket attacks.
The truce came after the death toll reached 40 on the fourth day of violence in Gaza City between the factions.
Israeli forces earlier launched missiles at a Hamas base following rocket fire, and reporters were trapped by gunfire in Gaza City.