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Hamas said it also fired a rocket at the major northern city of Haifa, 140 km (88 miles) away, and though this was not confirmed, Israel said a rocket had landed in Hadera, 100 km (60 miles) from Gaza, further than had previously been reached.
While the Israelis reported no casualties, the long-range salvo was celebrated by the outgunned Palestinians as proof of their resolve in hostilities that flared three weeks ago after the abduction and murder of three Jewish seminary students.
The rocket strikes could lead to an Israeli ground invasion, something officials have said is a possible option.
In the densely populated Gaza Strip, explosions echoed day and night, shaking buildings and sending up plumes of smoke. At least 17 civilians, including five children, were among the 23 dead, Palestinian officials said. On the Israeli side, at least two people were wounded, medics said.
Israel assassinated a senior local leader of the Islamic Jihad militant group in the northern Gaza Strip early on Wednesday, neighbours and hospital officials said, and five others including family members were killed.
An Israeli military spokeswoman said she had no initial details on the strike.