Israel resumed air strikes in Gaza after Palestinian militants fired rockets following the end of a three-day truce on Friday morning.
Five people were killed in Gaza, while two Israelis were injured by mortars.
The Israeli army called the renewed rocket attacks “unacceptable, intolerable and short-sighted”.
The Palestinian militant group Hamas, which dominates Gaza, earlier rejected any extension of the truce, saying Israel had failed to meet its demands.
Israeli government officials say they had pulled out of Egyptian-brokered negotiations with Hamas and the other Palestinian factions in Cairo, stressing they would not “negotiate under fire”.
But Egypt called on both sides to return to the negotiating table.