According to a statement issued by Olmert's Office, an instruction was given to security forces to take pinpoint action against launching cells in Gaza.

However, the statement said that Israel will continue to preserve the Gaza ceasefire agreement reached a month ago and will ask the Palestinian National Authority to take immediate action to stop rocket attacks.

The decision was made at an emergency meeting between Olmert and leaders of the security establishment Wednesday morning.

Seven Qassam rockets were fired by Palestinian militants from the Gaza Strip at Israel on Tuesday.

One of the rockets landed in the southern Israeli city of Sderot Tuesday evening, wounding two teenagers. One was seriously wounded and the other suffered moderate injury.

According to an IDF spokesperson, around 60 rockets have been launched at Israel since a truce deal between Israel and Palestinians took effect in the Gaza Strip on Nov. 26.

Following Tuesday's nighttime attack, Peretz called Olmert and urged him to change the restraint policy.

"We can not continue to restrain ourselves," Peretz was quoted by Israeli media as telling Olmert. "We can not let the Islamic Jihad (Holy War) do whatever they want and we need to take action to stop the Qassams."