In Gaza, residents surveyed damage and mourned the dead outside a mortuary and at funerals.
Foreign Ministry spokesman Abbas Mousavi has strongly denounced the Zionist regime's terror attack on the Gaza Strip and the assassination of an Islamic Jihad commander.
He reiterated his warning that "this could take time" and said Israel would respond to attacks "without mercy".
"In the last day, we have destroyed important targets of Islamic Jihad", the caretaker prime ministertold a cabinet meeting, referring to the militants who launched more than 200 rockets into Israel after an Israeli airstrike killed Bahaa Abu el-Atta, one of its senior commanders, and his wife.
Palestinian officials said six members of family were killed and 12 others wounded in an apparent Israeli airstrike on their house in Deir al-Balah town, in the central Gaza Strip, early Thursday.
Despite their enmity, Hamas and Israel have managed to defuse previous confrontations and avoid a full-scale conflict for the past five years, following three wars from 2008-2014.
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United Nations Special Coordinator for the Middle East Peace Process, Nickolay Mladenov urged calm, saying the UN is trying to de-escalate the conflict between Islamic Jihad fighters and Israel.
Earlier in the day, the Israeli military reported hundreds of rockets launched from Gaza at Israeli territory, with "one rocket every seven minutes".
Israel rarely acknowledges deals with Gaza militant groups. Al-Nakhla is said to be based in Damascus.
"As long as the Israeli warplanes bomb the Gaza Strip, the resistance will respond to the Israeli aggression and defend the Palestinian people", a joint statement from Gaza militant groups said. The flare-up comes at a politically sensitive time for Israel.
It was the second election since April, when polls also ended inconclusively.
United Nations envoy Nickolay Mladenov arrived in Cairo on Wednesday afternoon, airport officials said, following reports he was to hold talks aimed at halting the fighting.