Targets included drone sheds, a rocket-making workshop and "military compounds," a military statement said.

Israel had said Tuesday it hit more than 35 militant targets in the Palestinian enclave after a barrage of rocket and mortar fire from Hamas, the Islamist group that runs the Gaza Strip, and Islamic Jihad.

It said late Tuesday about 70 rockets and mortars had been fired at Israel throughout the day. A number of them were intercepted by air defence systems.

Three Israeli soldiers were wounded. There were no immediate reports of casualties in Gaza.

Sirens and explosions continued into the night after Tuesday's eruption.

Late Tuesday, a spokesman for Islamic Jihad said a ceasefire agreement had been reached to restore calm, though the Israeli army declined to comment.

In a rare joint statement, Hamas and Islamic Jihad declared shared responsibility for the rocket and mortar fire, saying it was in retaliation for Israeli attacks targeting their positions.

The exchange of fire comes after weeks of deadly protests and clashes along the Gaza-Israel border. Three members of Islamic Jihad were killed in an Israeli strike on Sunday.