Gaza is controlled by Hamas, an Islamic militant Palestinian group that seeks Israel's destruction and possesses a large arsenal of rockets and missiles capable of striking deep inside Israel. The Magen David Adom rescue service said it treated seven people overall, including two women who were moderately wounded.
Medical professionals inform that six people have been injured in the strike, including children.
Israel has also closed the Erez and Kerem Shalom border crossings and placed additional restrictions on fishing.
Netanyahu, who is in the United States, said he would be cutting short his U.S. visit and would return home. Israeli General Benny Gantz has called on Mr Netanyahu to return to Israel to deal with the security situation, where there has been no immediate claim of responsibility.
"Their leaders should be aware that we will respond with force against their aggression", it said in a statement, without commenting on who may have been responsible for the rocket.
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Netanyahu is believed by many analysts to want to avoid another war in the Gaza Strip - the fourth since 2008 - with unpredictable results ahead of the elections.
Hamas claimed on Arab TV networks that the rocket was sacked "by mistake", possibly caused by the stormy weather, echoing a similar claim from 11 days ago when it fired two long-range rockets at Tel Aviv, an attack which elicited a broad Israel Air Force (IAF) strike on some 100 terror targets in Gaza.
That came minutes after the Israeli military activated air raid sires in the area and said one rocket had been launched out of Gaza, a Palestinian enclave whose dominant Hamas Islamists and other militant groups possess such weaponry.
Both Hamas and Islamic Jihad denied they were behind the March 14 rocket fire towards Tel Aviv, raising the possibility they were launched by fringe groups.
Monday's attack came 10 days after rockets were fired from Gaza toward Israel's densely populated commercial capital of Tel Aviv.