Prime minster speaks before the second security cabinet meeting of day and after barrage of rockets from Gaza on Tel Aviv area.

''Hamas ignored truce, we have resumed attacks,'' OC southern command says, adding that IDF has not activated its full range of capabilities.

Israel on Tuesday accepted an Egyptian proposal for a cease-fire with Hamas and ordered its military to halt operations against targets in Gaza, but Hamas rejected the proposal outright and continued firing rockets against Israeli civilians.

“If anyone was still in doubt about the nature this terrorist group, here’s proof again: Hamas wants more war, wants more civilian casualties, wants more rockets fired at Israel, and its plan still is to destroy the Jewish state.''

US State Department: ''The Israelis welcomed the ceasefire, the cabinet supported it and as Hamas continued to fire rockets, Israel declined to respond for several hours.''

Hamas - ruled Gaza may have little economy to speak of - at least for the man on the street.

Police say suspects admit abducting 16-year-old Mohammed Abu Khdeir and setting him on fire.

Initiative calls for end of all ''hostilities'' from both sides, meeting in Cairo between Israeli, Palestinian representatives within 48 hours after quiet restored; Kerry expected to visit Egyptian capital.

Hundreds of intelligence-based air strikes don't receive green light due to risk to Gazan noncombatants; senior security officer says terror group has sustained ''significant blow.''

French Prime Minister Manuel Valls strongly condemned violent anti-Jewish attacks in Paris on Sunday during which pro-Palestinian protesters attempted to storm two synagogues after an anti-Israel demonstration.