Israel assassinated a senior Islamic Jihad commander inside Gaza early this morning. Palestinian factions are now firing an intense barrage of rockets into Israel in retaliation.
Israel said it killed Baha Abu al-Ata because he was responsible for several recent rocket strikes from Gaza and was planning "immediate" further attacks on Israel.
Israel allegedly targeted another Islamic Jihad leader in Damascus at the same time. The Palestinian group's HQ is in Syria.
For the first time since the 2014 war, schools and shops are closed in Tel Aviv.
The received wisdom is that neither Hamas nor Israel wants a war. But if Islamic Jihad carries out massive retaliation for the assassination it could lead to one.
Neither Netanyahu nor his centrist rival, Benny Gantz, have been able to form a government since Israel's indecisive election in September left neither side with a majority.
But the Joint List, the main party representing Israel's Arab minority, says the strike was a cynical political move by Netanyahu to try to hold on to power.
This makes it more likely that Gantz-Netanyahu find a way to form a unity govt, and less likely Gantz forms a minority govt that depends on support from Joint List.
20 of the rockets were intercepted by Israel’s Iron Dome missile defence system, army says.
If the Islamic Jihad fighters were killed (it sounds like they were) it's likely to only increase the group's appetite for escalation.