An Israeli man has been killed in the border town of Sderot by a Palestinian rocket fired from the Gaza Strip.
The man was the second Israeli killed by rockets this month
The 36-year-old man died in hospital after shrapnel hit him in the neck when a rocket landed near a swimming pool.
The armed wing of the Palestinian Hamas movement has claimed responsibility for the strike.
Israeli Prime Minister Ehud Olmert said a crackdown against Hamas - which has seen several days of air strikes and arrests - would continue.
"No-one involved in terror has immunity - pure and simple," he told his Cabinet on Sunday.
On Saturday, five Palestinians died in air strikes on several Hamas positions across the Gaza Strip.
Israel also arrested a second Hamas member of the Palestinian cabinet, Wasfi Kabaha.
The arrest follows the detention on Thursday of Education Minister Nasser al-Shaer and about 30 other officials.
More than 40 people have now died in 12 days of Israeli bombings in Gaza, which Israel says is aimed at stopping rocket attacks on its territory by militants.
One other Israeli civilian has been killed and 16 wounded by rockets fired into Israeli towns, particularly Sderot, in recent days.
According to the Israeli army, more than 230 rockets have been fired from Gaza since the current round of attacks began.
Meanwhile, Hamas has warned that any Israeli attack against the group's military or political leaders would make the release of Corporal Gilad Shalit more uncertain.
Cpl Shalit has not been heard from or seen since his capture near Gaza in June 2006.