"Israel launched an air strike on a metal workshop in the southern Gaza Strip town of Rafah on Wednesday afternoon, killing one Palestinian and injuring three," hospital officials said.
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An Israeli army spokeswoman confirmed the air strike, saying that the target was a weapons warehouse.
"Militants from Gaza meanwhile fired at least nine rockets and three mortar shells at Israeli communities near the border with the Strip on Wednesday," she said. Several fires were ignited in some of the communities.
The air strike and rockets come as Palestinian militant factions announced a truce proposal after two days of talks with Egyptian intelligence chief Omar Suleiman. The truce would involve the Gaza Strip first and the West Bank later.
The proposal calls on Israel to end its military operations in Gaza as well as a more than 10-month blockade on the enclave. The proposal is to be presented to Israel next week.
However, two factions, the Islamic Jihad and Popular Resistance Committees, expressed reservations.
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