Palestinian militants fire rockets at Israeli town of Sderot

Middle East: Palestinian militants fired rockets at the southern Israeli town of Sderot on Sunday, wounding three people including one seriously, rescue services said.

Medical officials said the wounded were taken to hospital after one rocket landed in the centre of the southern border town, a frequent target for gunmen in the nearby Gaza Strip.

Militants from the ruling Islamic group Hamas have claimed responsibility for the attack.

Israeli Defence Minister Amir Peretz said on Sunday that Israel would target Palestinians deemed responsible for the attack.

"Those who try to harm us will pay a dear price. There will be no compromise on this," Peretz told reporters.

Last Wednesday rockets fired from Gaza killed a woman and wounded several other residents in Sderot.

Israeli Prime Minister Ehud Olmert has so far ruled out an extensive Gaza offensive.