Tel Aviv, May 9 (IANS): The Israeli army struck a Hamas military post in the Gaza Strip in the early hours of Sunday in retaliation against a rocket attack.

"Terrorists in Gaza fired a rocket toward Israel earlier tonight. In response, our aircraft just struck a Hamas military post in southern Gaza. Terror has consequences," ," the Israel Defence Forces (IDF) said on Twitter, DPA news agency reported.

Israel reinforced a blockade of the Gaza Strip in 2007 together with Egypt, both countries justifying the measure with security concerns.

Around 2 million people live in the Gaza Strip in dire conditions. The ruling Hamas are classified as a terrorist organization by Israel, the US and the European Union.

The latest exchange of fire followed unrest in Jerusalem on Friday night, during which dozens of Israelis and Palestinians were injured.

Police said there were clashes between Palestinians and Israeli security forces in the Old City on the holy site know to Jews as the Temple Mount and to Muslims as al-Harem al-Sharif.

Stones and fireworks were thrown at officers, who then took action against rioters, police said.

Israeli media reported some 200 Palestinians and 17 Israeli police officers were injured.

Thousands of Muslim worshippers had earlier gathered for prayers on the last Friday of Ramadan.

Since the start of Ramadan and the delay of Palestinian parliamentary elections, tensions and violence have repeatedly erupted in the West Bank and eastern Jerusalem.

Fridays and daily prayer times are particularly rife for violent clashes, especially at the gates of the Old City and the entrances to the Temple Mount, or the Noble Sanctuary.