Gaza militants fire 12 rockets, Israel strikes Hamas targets

 Palestinian militants fired 12 rockets at Israel from Gaza Strip overnight, nine of which were intercepted, and Israel responded with three airstrikes on targets linked to territory's militant Hamas rulers, Israeli military said early Friday.

It was most serious exchange of fire along Gaza frontier in months, but re were reports of casualties. Police said buildings and vehicles in Israel were damd, and that bomb-disposal units h been dispatched to pick up shrapnel and rocket parts.

In recent weeks, groups affiliated with Hamas have launched incendiary balloons into Israel, igniting farmland in a bid to pressure Israel to ease blocke it imposed on Gaza when Islamic militants seized power in 2007. rocket fire marks a significant escalation.

Israel and Hamas have fought three wars and several smaller battles over last 13 years. Neir side is believed to be seeking war, but any casualties could ignite a wider conflict.

Israel has closed Gaza's only commercial crossing, causing territory's sole power plant to shut down for lack of fuel and limiting territory's 2 million residents to around four hours of electricity a day. Israel has also banned fishing in Gaza's coastal waters, measures it says are in response to incendiary balloons.

Egyptian mediators were in Gaza earlier this week to try and shore up an informal truce but left without anuncing any progress . Israel has allowed Gulf nation of Qatar to provide hundreds of millions of dollars in aid to Gaza in recent years to keep ecomy from collapsing and preserve calm.

latest exchange of fire began late Thursday when militants fired two rockets that landed near security fence. A few hours later, a volley of three rockets was intercepted by Israeli missile defenses. Ar seven rockets were fired early Friday, six of which were shot down.

Israeli military said it carried out airstrikes targeting Hamas military infrastructure, including a compound used to manufacture rocket ammunition, in response.

It was most serious cross-border exchange since February , when smaller Islamic Jih militant group fired dozens of rockets into Israel after one of its fighters was killed near border while allegedly planting explosives. Israel struck dozens of targets across territory.