Hamas says it has reached a ceasefire with Israel brokered by Egypt after a wave of Israeli air strikes on the Gaza Strip and dozens of rockets fired from the Palestinian enclave.
Twitter: @AsafRonel Rocket attacks over Gaza
The exchange of fire followed months of tension that has raised the prospect of a fourth war in the blockaded Gaza Strip since 2008.
Two Palestinians, aged 15 and 16, were killed when they were caught in an Israeli strike on a building they were near in the west of Gaza City, the enclave's health ministry said.
Twenty-five people were wounded across Gaza, the ministry said.
Three Israelis were wounded when a rocket hit a house in the city of Sderot near the Gaza Strip, authorities said.
Hamas spokesman Fawzi Barhoum said late Saturday the Islamist movement, which runs the Gaza Strip, had agreed to an "Egyptian offer to return to a ceasefire to stop this escalation."
An Israeli military spokesman declined to comment, but said its actions would depend on what happens on the ground.
Israel blamed Hamas for the escalation, pointing to months of protests and clashes along the border that its military argues the Islamist movement is seeking to use as cover for attacks.
There have also been hundreds of fires at Israeli farms caused by kites and balloons carrying firebombs from Gaza, leading to political pressure on the government and military to take action against Hamas.
Israeli Prime Minister Benjamin Netanyahu said Hamas had been hit with "the hardest blow" since a 2014 war "and we will increase the strength of our attacks as necessary."
Hamas's Barhoum said the group was responsible for the barrage against Israel and that it was carried out "in response to the Israeli air strikes".
"The protection and the defence of our people is a national duty and a strategic choice," Barhoum said.
Tensions have been building between Hamas and Israel for months over mass protests and clashes along the border fence.
The protests have called for Palestinian refugees to return to their former homes now inside Israel.
Since the protests and clashes broke out along the border on March 30, at least 141 Palestinians have been killed by Israeli fire.
The majority of those killed were involved in protests and clashes but others were seeking to breach or damage the border fence.
