Late Tuesday a spokesman said a ceasefire agreement had been reached to restore calm, though the Israeli army declined to comment on the claim.
Israeli soldiers stand guard next to an Israeli Iron Dome defence system, created to intercept and destroy incoming short-range rockets and artillery shells, deployed along the fence with the Gaza strip on May 29, 2018.
Gaza's streets were filled with morning shoppers and children went to class, and schools opened as usual in Israeli towns near the border a day after the worst flare-up in violence since the 2014 Gaza war.
"Israel will make [Hamas] pay for all fire against Israel", Katz told Israeli public radio.
Israel said its strikes Wednesday hit drone storage facilities, military compounds, and rocket and munition workshops across the Gaza Strip.
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Rockets fired by Palestinian militants are seen over the Gaza Strip heading toward Israel, early Wednesday, May 30, 2018.
The Gaza border has become a deadly flashpoint in recent weeks. Several were shot down by its Iron Dome rocket interceptor system while others landed in empty lots and farmland. Israel has explained its actions citing security reasons, saying it is defending its borders and blames Hamas for encouraging thousands of Palestinians to break through the border and attack Israelis.
The Israeli military said the boat was intercepted without incident, was taken to the Israeli port of Ashdod and the 17 people aboard would be sent back to Gaza.
Protesters have demanded that Palestinians who were expelled in the 1948 war amid Israel's creation be allowed to return to their former homes, now inside Israel.
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Hamas and Islamic Jihad also started to evacuate military bases and installations across Gaza in anticipation of the Israeli retaliation.
"Palestinian factions will abide by calm as long as [Israel] abides by it", Islamic Jihad spokesman Daoud Shehab said.
Intelligence and Transportation Minister Israel Katz with PM Netanyahu.
Kuwait first put forward the idea 10 days ago after condemning Israeli forces' killing of dozens of Palestinians during protests on the Gaza border. Seventy-two people were killed on the Israeli side. "We will continue to act in Israel's best interests", he said.
Among those associated with RSY-Netzer to attend was Nina Morris-Evans, who said: "By Jewishly mourning the lives lost, we were not condoning terrorism, Hamas or violence of any form".
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Itamar Yaar, former deputy head of Israel's National Security Council, said it was unlikely that the latest escalation would lead to another war, mainly because neither side is interested in such a confrontation. Peace talks between Israel and the Palestinians have been moribund since April 2014 and Israeli settlements in occupied territories have expanded.