Israeli air strikes kill Palestinian man in Gaza
Hashel Mubarak Salman, 58, died in the overnight raids which left at least five others wounded, according to the Palestinian health ministry.
Two Palestinian officials said a "reciprocal and simultaneous" ceasefire went into effect at 3:30am local time to end the fighting. It was brought about with efforts from Egyptian, Qatari and United Nations officials, Reuters reported.
The exchange of fire came hours after 45-year-old prisoner Khader Adnan died in an Israeli prison, after nearly three months of hunger strike which he launched following his arrest from his home in the occupied West Bank.
The rocket attacks from Gaza were centred on the Israeli town of Sderot and other areas close to the frontier with Gaza. Palestinian media outlets reported explosions in the northern region of Gaza.
The fighting has revived fears about an escalation of violence in the region.
EU foreign policy chief Josep Borrell urged Israel earlier on Tuesday to halt "unilateral measures" that could raise tensions further in his first meeting with Israel's foreign minister.
Adnan was a well-known figure in Palestine, and had been arrested more than 10 times, spending a total of eight years behind bars.
A member of the Palestinian Islamic Jihad resistance group, Adnan had been on hunger strike in protest against his detention since 5 February, when he was arrested at his home in Arraba, a town in the occupied West Bank, south of Jenin.