Security officials told the Security Cabinet Monday that the Grad rockets used to attack Ashkelon came from Iran. They estimated that Hamas and other terrorists have smuggled approximately 20 Grad rockets into Gaza but added that the Air Force has bombed out the largest explosives laboratory in the Gaza region.

Security officials also warned that the northern border faces a threat of a Hizbullah attack in revenge for the recent assassination of Hizbullah mastermind terrorist Imad Mughniyeh although Israel has denied any involvement.