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Edition: U.S. Article Save Email Print Reprints Most Popular Most Shared UPDATE 1-Devaluation ups stakes in Venezuela election year 09 Jan 2010 Senate's Reid tells Obama he regrets racial remarks 9:57am EST CBS chief: Failed Leno/NBC experiment boosted CBS 09 Jan 2010 For some, 3D movies a pain in the head 09 Jan 2010 Malaysian Christians fearful as church attacks rise | Video 9:09am EST UPDATE 1-Devaluation ups stakes in Venezuela election year 09 Jan 2010 For some, 3D movies a pain in the head 09 Jan 2010 Malaysian Christians fearful as church attacks rise | Video 9:09am EST Senate's Reid tells Obama he regrets racial remarks 9:57am EST U.S. suggestion of sanctions causes stir in Israel 12:37pm EST Israel vows "powerful response" to Gaza attacks Nidal al-Mughrabi and Allyn Fisher-Ilan Sun Jan 10, 2010 1:44pm EST Related News Israeli air strike kills three Gaza militants 12:35pm EST Three Palestinians killed in Gaza explosion: report 12:24pm EST Israel vows "powerful response" to Gaza attacks 8:10am EST One dead in Israeli air raids on Gaza: medics Thu, Jan 7 2010 Israel signals tougher terms for prisoner swap talks Thu, Jan 7 2010 GAZA/JERUSALEM (Reuters) - Three Palestinian militants were killed in an Israeli air strike in the Gaza Strip on Sunday, hours after Prime Minister Benjamin Netanyahu vowed a "powerful response" to any attacks from the territory. World An Israeli army spokesman said an Israeli aircraft carried out an air strike against militants spotted preparing to launch rockets toward Israel. Palestinians said the three militants were killed in a field often used to launch rockets toward Israel. Netanyahu told a weekly cabinet session 20 mortar bombs and rockets had been fired at Israel from the Hamas-ruled territory last week. "I view this very seriously. The government's policy is clear, any shooting at our territory will receive an immediate and powerful response," he said. Violence has risen along the Israeli-Gaza frontier in the past month, which could further complicate U.S.-backed diplomacy in the region, after a respite following a three-week Gaza war a year ago in which 1,400 Palestinians and 13 Israelis died. Three Palestinians were killed in a series of Israeli air strikes in Gaza on Thursday, including the first air raid in months to target a site inside Gaza City. LEAFLET DROP Palestinians said the targets were sites belonging to other militant groups, not Hamas Islamists who seized the territory in 2002 and are seen as having reined in violence since the Israeli offensive last January. Israel also dropped leaflets warning Gaza's 1.5 million residents to avoid coming within 300 meters (yards) of the border fence with Israel, citing security reasons. Netanyahu told his cabinet Israel had targeted factories used to were make rockets and tunnels along Gaza's border with Egypt, where "Iran smuggles in missiles and rockets" into Gaza, naming an arch-foe Israel accuses of arming militants. Turning his attention to the occupied West Bank, where Western-backed Palestinian President Mahmoud Abbas' Fatah movement holds sway, Netanyahu demanded leaders there "stop incitement" that violated a U.S.-backed peace road map. He charged a public square had been named in the West Bank for a militant involved in a lethal 1978 bus attack in Israel, and that three other militants Israel killed after they gunned down a Jewish settler have been hailed as martyrs. "This is not the way to make peace," Netanyahu said. Abbas has refused to resume negotiations with Israel, stalled for a year, before a halt to Jewish settlement building in the West Bank which Palestinians see as an obstacle to achieving a two-state solution of their conflict with Israel. Abbas has rejected a limited, 10-month halt to settlement building announced by Israel in November as insufficient. (Editing by Jon Boyle) World More from Reuters Exclusive: Commercial property returns to grow in 2011 NEW YORK (Reuters) - U.S. commercial real estate investors may have to wait until next year to see their returns start to grow, as returns will likely remain in negative territory this year, according to the research arm of real estate services company CB Richard Ellis Group Inc. Bomber's betrayal shows spy challenge for West Republicans call on Senator Reid to quit post White House plans more to trim joblessness: aide U.S. retailers face tough road to recovery in '10 Lending slowdown, provisions hit Saudi banks in Q4 » More Top News Work & Life: The ministry of matchmaking? South Korea's health ministry plans a program to bring single public servants together in the hopes of fostering love among available bureaucrats. Full Article France to explore "Google tax" Slideshow: The worst jobs for 2010 Snowed-In Brits boost adultery website Lifestyle "Crack" for retailers? The all-important holiday shopping frenzy might actually be bad for business. Full Article Small business job growth stalls Video: Should VCs get tax breaks? 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