Defense Minister Yoav Gallant said Hamas made a grave error when it began its war on Israel. "IDF soldiers are fighting terrorists who infiltrated communities wherever they are. Israel will win this war," he said in a post, more than three hours after Hamas launched its surprise attack.
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Gallant declared an emergency situation in an 80-kilometer (50-mile) radius of the Gaza border as part of the security preparations for an extensive war.
The IDF began a counterattack with dozens of aircraft conducting bombing raids on Gaza.
The fighting began with a massive barrage of some 2,200 rockets fired from the Strip at southern and central Israel including on Tel Aviv and its surroundings, Jerusalem and other metropolitan areas as rocket fire to the south continued for hours.
At least two Israeli deaths were confirmed and hundreds of wounded were reported to arrive at hospitals, some in critical condition, but the numbers were expected to rise amid hostage-taking and fighting inside communities.
Hamas said it had abducted 35 Israelis and taken them back into Gaza, as residents there celebrated the operation.
The security cabinet was scheduled to meet later and a full cabinet meeting was scheduled for the evening hours.
Reservists were being called up and the protest movement, which was organized soon after the coalition led by Prime Minister Benjamin Netanyahu announced its judicial overhaul, said members of the reserves who told the IDF they would no longer serve, were called to return to duty.
The Lebanon-based Hezbollah terror group hailed the Hamas offensive saying it was a message to the Arab states seeking normalization with Israel.