The war in Gaza intensified last night and this morning. The Palestinians fired five 81 mm mortar shells last night at Israeli targets; four shells fell in Nachal Oz and Netiv] Ha\'Asarah, communities within Israel-proper. Rockets also hit the Gush Katif town of Morag; residents were instructed to remain in their shelters. The IDF retaliated with rockets towards Palestinian Intelligence and Force 17 targets. The PA continued with six more mortar shells this morning, four of which were shot towards Netzarim. The army responded with more rockets, this time towards the southern neighborhoods of Gaza City.



A military source was quoted, \"We have to make it clear to the Palestinians that mortar shells are not part of the game, and that the reaction to them will be extremely grave.\" Two PA military installations and a power station were targeted by Israel Air Force helicopter gunships, and Gaza City was left without electricity. In addition, Israel launched tank fire at terrorist targets near Netzarim. Palestinian terrorists fired at Netzarim and IDF targets nearby this morning; there were no injuries, and IDF troops responded with gunfire.

In Jerusalem today, at least one policeman was lightly injured by rock-throwing Arabs in the Old City. The Arabs rioted at Lions Gate and at Mughrabi Gate.