Speaking at the start of a special cabinet meeting being held in Safed, the prime minister warned: "The other side will pay a higher price then they have already paid, until they stop firing."
"Israel's defense policy based on two principles: 'Kill or be killed' and 'He who harms you should bear the blood on his head', I suggest Hamas, Jihad and the other organizations not test our determination to actualize the two principles I have described here."
Finance Minister Yuval Steinitz told Army Radio Sunday night that continued terror from Gaza will eventually require weighing a fundamental response from the IDF.
"Responding to activity is not enough," Steinitz said, specifying that in the long run, a "root canal" to change the strategic situation might be necessary.
"We will weigh an intensive treatment for the arms problem, which will apparently be toppling Hamas from power and reestablishing control over the southern Strip in the area of the Philadelphi route."
Defense Minister Ehud Barak also warned Islamic Jihad and Hamas leaders "not to test our abilities," following a meeting with security and intelligence chiefs on Sunday.
During the meeting, Barak examined plans for continued IDF operations in Gaza to stop the rocket attacks on Israel. The defense minister added, "We will do everything to protect the citizens of Israel."