Olmert: Hamas will be first to get hurt

"This is a serious step up in the terror war which the Hamas-led government is responsible for," Olmert said, speaking at the home of the American ambassador in honor of the United States' independence day.

According to the prime minister, "this serious act and this criminal attempt to hurt Israel's citizens will have far-reaching consequences. The Hamas organization will of course be the first to get hurt."

Following the Qassam fire on Ashkelon, the political-security cabinet is expected to convene at 9 a.m. Wednesday. State officials said that a very harsh response was expected.

The rocket landed in the heart of Ashkelon at around 7 p.m. Tuesday. Many residents reported hearing a loud explosion inside the Ronson high school, close to the Ashkelon Acadmeic Collage.

Large police forces were dispatched to the area. There were no reports of injuries, although a large number of parents and students were present at the school at the time of the fall.

Izz al-Din al-Qassam, Hamas' military wing, claimed responsibility for firing the rocket in a statement issued in Gaza.  

'We won't give in to murderers' blackmail'

Southern District Police Commander Uri Bar Lev arrived at the scene of the incident and said: "The defense establishment knows how to respond to this incident. We know how to arrive fast, deal with the event fast, and provide the best treatment in this event as well. As far as we are concerned, we are providing the treatment here as well as in Sderot and are continuing as usual."

Ashkelon Mayor Roni Mehatzri also arrived at the scene of the incident and addressed the Qassam attack on the heart of his city, saying that "this is a new and unfamiliar situation, one we do not wish to get to know better."

He added that "a city with 120,000 people is not supposed to live under a threat of rockets."

Speaking at the US ambassador's house, Olmert also referred to kidnapped soldier Gilad Shalit.

"For nine days now we are trying to bring Gilad Shalit home. It's difficult for the family and the state, but we will do everything to bring Gilad home. We will not give in to murderers' blackmail, we won't accept the brutal and baseless demands made by the kidnappers," the prime minister said.

The prime minister spoke in English and expressed warm regards and best wishes for the leaders and citizens of the United States, on their nation's 230th birthday. He praised America for its war on global terror organizations, whether in Iraq or in Afghanistan.

"We pray that you win, we believe you will win. The nation of Israel loves you," said Olmert.

President Moshe Katsav also spoke at the ceremony, praising the United States and its values, which he said are the ones guiding Israel as well.