The decision, announced yesterday, formally authorises "the taking of significant military steps," it said in a statement.
"The war that was forced on the State of Israel in a murderous terrorist assault from the Gaza Strip began at 06:00 yesterday," it said.
The military has promised a harsh response in Gaza.
Israeli media say at least 600 people have been killed in the surprise cross-border incursion by Hamas militants from the Gaza Strip.
The Kan public broadcaster and Channel 12, as well as the Haaretz and Times of Israel newspapers, all reported the toll.
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