Palestinian militants fired a rocket from the Gaza Strip into southern Israel, causing material damage but no injuries, the army said.
"A rocket was launched from the Gaza Strip at southern Israel and hit in the city of Sderot, causing damage to a building," a statement from the military read. "No injuries have been reported."
Israeli media said the rocket had hit a kindergarten.
Medics said they treated two people for shock.
No group in Gaza claimed responsibility for the attack, which came hours after Israel announced a lockdown on the West Bank city of Hebron and cuts in monthly tax payments made to the Palestinian Authority, following a wave of deadly attacks on Israelis.
Yesterday's rocket is the thirteenth projectile fired from the Gaza Strip -- which is run by the Islamist movement Hamas -- to have hit Israel since the start of 2016.
Smaller, more radical Islamist groups have often been blamed, with Hamas forces either unwilling or unable to prevent the rocket fire.
Israel categorically holds Hamas responsible for rocket attacks from Gaza.
Earlier yesterday, the Middle East diplomatic quartet said that the "lack of control of Gaza by the Palestinian Authority, and the dire humanitarian situation" were among the factors that "feed instability and ultimately impede efforts to achieve a negotiated solution."
"Preventing the use of territory for attacks against Israel is a key committment that is essential to long-term peace and security," the United States, European Union, Russia and the United Nations -- which comprise the quartet -- said in a report.
