A Russian-made Grad rocket was fired early Friday from the Gaza Strip at the southern Israeli costal town of Ashkelon with no injuries reported, Israeli radio reported.

No group in Gaza claimed responsibility for launching the rocket. However, an Israeli army spokesman told the radio that militants from Gaza fired the rocket at a populated area in the town.

The spokesman said that the rocket caused a huge explosion and damaged a building and several cars parking in the area. Two women were also taken to hospital for treatment of panic.

The Israeli army had threatened earlier that it would respond to any rocket attack fired from the Gaza Strip.

In late December 2008, the Israeli army carried out a three- week offensive on the Gaza Strip that the Jewish state said was aiming at preventing militants from firing rockets at Israel. Around 1,114 Palestinians were killed and 5,000 others injured.

Meanwhile, an Israeli government source told the broadcaster that firing the rocket was a response to the Arab League's decision to back the Palestinians to resume direct peace negotiations with Israel.