Israeli Defense Minister Moshe Ya'alon on Thursday ordered the military to prepare for a further escalation on the border with Gaza, after two days of massive rocket fire at southern Israel and retaliatory Israeli strikes.

A limited number of reserve troops were called up Thursday to bolster Iron Dome rocket defenses, local media said.

Earlier in the day, an Islamic Jihad official claimed that an Egyptian-brokered ceasefire had been reached with Israel. But Israel denied the claim, saying no truce deal had been struck.

"We don't seek an escalation. Quiet will be met with quiet," Ya 'alon said. He warned that Israel will continue to forcefully respond to further provocations from Gaza militants.

The Gaza Strip has witnessed a military escalation since Israeli troops killed three Islamic Jihad militants in Gaza on Tuesday. The killings led the Islamic Jihad, a group allied with Iran, to fire a barrage of rockets into neighboring Israeli communities.

Israel later reacted with a series of air strikes targeting military sites of the Islamic Jihad and the Hamas movement. No injuries or damage were reported in the latest rocket attack.