THE Israeli military struck Gaza early today in response to a rocket fired by Hamas the previous night, as Israel lit up Tel Aviv City Hall with the word “peace.”

Two Israelis were wounded by a rocket fired from Gaza on Tuesday, just as a ceremony in Washington was getting underway to formalise recognition agreements between Israel and the United Arab Emirates and Bahrain, seen by Palestinians as a betrayal.

The Israeli military said that in response it struck about 10 targets it alleged included a weapons and explosives manufacturing factory, underground infrastructure and a military training compound. 

The exchange offered a reminder that the festivities in the US would do little to change the conflict.

Neither US President Donald Trump nor Israeli Prime Minister Benjamin Netanyahu mentioned Palestine in the signing ceremony, but both Arab foreign ministers spoke of the importance of a Palestinian state.

The attacks came just after Tel Aviv City Hall lit up with the words for peace in Hebrew, Arabic and English in honour of the recognition agreement. 

Tel Aviv, once called Jaffa, was taken violently from the Palestinians in 1949 and residents were forced to flee to the nearby Gaza Strip, taking their keys with them to symbolise the hope to return. 

In Jerusalem, authorities projected the flags of the US, Israel, UAE and Bahrain on the walls of the Old City where Palestinians are being illegally evicted from their homes.