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PLEASE NOTE: EDIT CONTAINS CONVERTED 4:3 MATERIAL At least 25 people have been wounded in Israel's latest air strike on Gaza. Witnesses said a two-storey house in Jabalya was hit as the cross border violence entered a fourth day early on Monday. They said a number of children were among the wounded. Islamic Jihad said the intended target of the attack was a Palestinian militant believed to be in the area. Israel confirmed the latest air strike had taken place but gave no further details. The violence flared on Friday when Israel killed two Palestinian militant leaders in response to rocket fire from Gaza. A salvo of rockets was fired into Israel in retaliation, wounding six. The Israeli army says more than 150 rockets have been fired into the south of the country since Friday. At least 16 people, including militants and a boy of 12, have been killed in Israeli air strikes on Gaza during the same period. Israeli Prime Minister Benjamin Netanyahu on Sunday warned of a tough response to rocket attacks. SOUNDBITE: Israeli Prime Minister Benjamin Netanyahu saying (Hebrew): "I have a clear policy and a clear instruction - we will strike at anybody who plans to strike at us, tries to strike at us or actually does hit us, and the IDF is dealing very heavy blows at those terror organisations." The escalating violence has prompted appeals for a ceasefire from the United Nations, the European Union, the West Bank-based Palestinian Authority, and neighbouring Egypt. Paul Chapman, Reuters