A ceasefire between Israel and Gaza militant groups appeared to be holding on Sunday, ending the most intensive flare-up in violence around the Palestinian enclave since a 2014 war.
A Palestinian official who spoke to Reuters on condition of anonymity said Egypt and other global players were holding contacts with Israel and Gaza to restore calm.
"In consultation with the minister of defence, the chief of staff and the top security command of the state of Israel, we have decided on strong action against Hamas terrorism", Mr Netanyahu said in a video statement.
Still, it was unclear whether the truce would hold as warning sirens were heard in southern Israel early Sunday, indicating incoming fire, AP said.
The protest organisers say the demonstrations aim to press demands such as for a right to lands lost to Israel in the 1948 war of its foundation and for an Israeli-Egyptian blockade to ease.
The Israeli military says it has attacked several Hamas positions in the Gaza Strip, its largest daylight assault since 2014, as more than 30 rockets and mortars were fired towards Israel from the besieged enclave.
"There are three factors occurring that we view seriously and can not allow to continue", he said, adding that this was the largest daytime Israeli strike on Gaza since the 2014 Gaza War.
The Israeli military has lifted its restrictions along the Gaza border area, indicating it's accepted an Egypt-mediated cease-fire to end an intense, 24-hour round of fighting with Hamas militants.
Three Israelis were reportedly injured when one of the rockets landed on a residential home.
"The IDF have struck Hamas with the hardest blow since Operation Protective Edge and we will increase the strength of our attacks as necessary", he added, referring to the 2014 conflict.
Israel Defence Forces said almost 100 rockets and mortar shells were fired in less than 24 hours, setting off warning sirens in border communities.
About 17 rockets were fired at Israel, the military said, five of which were intercepted by the Iron Dome aerial defence system.
The IDF has launched an investigation into the incident, which has been cited as one of the most grave since the start of the violence at the southern border in March.
The "March of Return" protests have also seen Palestinians fly airborne incendiary devices toward Israeli territory, sparking hundreds of fires in southern Israel and causing millions of shekels in estimated damages.
The Israeli military last reported fire from Gaza around 1:30 a.m., and said special orders put in place in southern Israel over the weekend, including a prohibition on large gatherings, had been lifted.
Thousands took part in Friday's protests, which marked 100 days since their launch, with some venturing close to the border fence, burning tyres and throwing stones.
The statements came after Israeli warplanes carried out a fresh wave of airstrikes across the blockaded Gaza Strip on Saturday, martyring two Palestinian children.