On Saturday night, Hamas and the Palestinian Islamic Jihad terrorist groups announced that they agreed to a ceasefire with Israel, following talks with Egypt and other global bodies.
"Egyptian and global efforts succeeded in ending the current round of escalation", a Palestinian official told Reuters.
Israel's Education Minister and leader of coalition party, Naftali Bennett, slammed a ceasefire between Israel and Hamas which was announced on Saturday night to end nearly twenty-four hours of fighting, calling it a "serious mistake".
Israel unleashed its biggest air strikes on the Gaza Strip since a 2014 war on Saturday, killing two Palestinians, while dozens of rockets targeted Israel, but Hamas said a ceasefire had been reached late in the day. A senior Israeli defense official said, "Only the facts on the ground will dictate our further response".
The Israeli military has lifted its restrictions along the Gaza border area, indicating it's accepted an Egypt-mediated cease-fire to end an intense, 24-hour round of fighting with Hamas militants.
Health officials in Gaza said the building was empty, but two Palestinians aged 15 and 16, among a crowd in a nearby public park, were killed.
"Allowing Hamas to dictate the terms of the ceasefire after two months of arson attacks and hundreds of rockets on the residents of Gaza border communities is a serious mistake".
Mr Netanyahu said: "The IDF has struck Hamas with the hardest blow since Operation Protective Edge and we will increase the strength of our attacks as necessary".
In the Saturday afternoon salvo, Palestinians fired more than 60 rockets and mortar shells and sirens wailed frequently in southern Israel.
Such rocket attacks have become a regular feature of the asymmetric conflict between Hamas and Israel, driving the IDF to develop the Iron Dome defence system to intercept and destroy incoming rockets.
Israel launched the first airstrikes early Saturday after an IDF officer was injured by a grenade thrown at him during a violent riot along the Gaza border on Friday.
Gaza's health ministry said Saturday that a 20-year-old struck by gunfire Friday during the protests in the southern Gaza Strip had also died of his wounds.
Two Palestinians were killed on Saturday as Israel unleashed a wave of air strikes against the Gaza Strip, while scores of rockets were fired back from the Hamas-run territory.
Some also targeted Hamas tunnels in northern and southern Gaza.
Israeli jets were seen targeting several neighbourhoods in the Gaza Strip and smoke could seen above Gaza city.
Since the protests began on March 30, at least 138 Palestinians have been killed by Israeli forces, with more than 160,000 wounded.
Twenty-five people were wounded across Gaza, the ministry said.
Israel says it is defending its sovereign border and accuses Hamas of using the protests as cover for attempts to breach the border fence and attack civilians and soldiers.