If Israel responds, it may worsen the present situation with the Palestinians, something no one wants to see, an senior intelligence officer told Ynet Wednesday, after dozens of mortars were fired at Jewish settlements in Gush Katif, following the killing of a Hamas terrorist earlier in the day. While the IDF is ready to retaliate, it has chosen to show restraint and wait for further developments before deploying its tanks to Palestinian territory. In addition, officers in the IDF Southern Command told Ynet the army has raised its level of readiness following the sustained attack and said it may take action against the mortar crews. "We are more prepared now than at any time in the last four months," said one senior officer. Officers also warned that the security situation in Gaza could continue for some time, and said that in addition to preparing for a military response to the attack, Israel has sent messages to the Palestinian Authority calling for calm to be restored. The escalation began Wednesday afternoon, when Palestinians fired at least three mortars at the Israeli settlements of Neveh Dekalim and Morag in southern Gaza. Israel requested arrest In the framework of the security coordination agreement, Israel asked the Palestinian Authority to arrest the mortar team, believed to be members of Hamas, and warned Israel would take action if the attacks did not stop. After determining the Palestinians would not act, the IAF fired a missile at the cell injuring one terrorist. The IDF has refrained from using aircraft to target Palestinian terrorists in recent months, but military officials warned that such a policy could chnage should the PA continue to refuse to take action against mortar-launchers.