Air raid warnings went off across Israel, including in the country's north for the first time in years - which the army later said was a "false alarm".
Twenty-four people, including children and militants, are reported dead after Israeli air strikes in Gaza that began Monday night.
Violence has also broken out in mixed Arab-Jewish cities across Israel, with members of Israel's 21 per cent Arab minority angry over the Jerusalem evictions and Gaza violence.
"It was good to hear the Minister reaffirm that this remains the Government priority too, with the Foreign Secretary having spoken to his Israeli counterpart and the Palestinian Prime Minister to offer our support in resolving the conflict".
She said "blanket statements like these [with] little context or acknowledgement of what precipitated this cycle of violence - namely, the expulsions of Palestinians and attacks on Al Aqsa - dehumanize Palestinians [and] imply the USA will look the other way at human rights violations".
The most intensive aerial exchanges between Israel and Hamas since a 2014 war in Gaza have prompted global concern that the situation could spiral out of control.
Palestinian militants have stockpiled enough missiles to continue bombing Israel for the next two months, security experts have warned, as escalating fighting led the United Nations to warn of "all-out war".
The unrest has been driven by anger over the looming evictions of Palestinian families from the Sheikh Jarrah neighborhood of east Jerusalem.
Israeli Defence Minister Benny Gantz also ordered a "massive reinforcement" in Israel where weeks of Israeli violence in occupied East Jerusalem and West Bank has resulted in communal protests and more police brutality.
Chinese rocket debris set for re-entry in coming hours
Jonathan McDowell, of the Harvard-Smithsonian Center for Astrophysics, told Fox News on Friday. It was reported to have damaged several buildings, though no injuries were recorded.
In the past three days, Hamas has fired at least 1,500 rockets from Gaza into Israel, according to Israel Defense Forces.
"Israel has gone insane", said a man on a Gaza street, where people ran out of their homes as explosions rocked buildings. At the same time, Gaza militants fired more than 250 rockets toward Israel, injuring six civilians. "It's a very scary situation to be in", said Margo Aronovic, a 26-year-old student, in Tel Aviv.
The fatalities in Israel include a soldier killed while patrolling the Gaza border and six civilians, including two children and an Indian worker, medical authorities said.
US energy corporation Chevron said it had shut down the Tamar natural gas platform off the Israeli coast as a precaution.
Thursday's barrage on Tel Aviv prompted Israel to reroute an El Al flight from Brussels away from Ben Gurion, its intended destination, to Ramon Airport in the south.
In what is being touted as the worst violence in years between Israel and Palestine, dozens have already died and hundreds have been injured with the conflict not showing any signs of easing.
The conflict has led to the freezing of talks by Netanyahu's opponents on forming a governing coalition to unseat him after Israel's inconclusive March 23 election.
Since the beginning of the Muslim holy month of Ramadan in mid-April, Palestinians have faced off nightly with Israeli police in East Jerusalem, who put up barriers to stop evening gatherings at the walled Old City's Damascus Gate.
These include Washington's recognition of disputed Jerusalem as Israel's capital, a US plan to end the conflict that they saw as favourable to Israel and settlement building.