"Gaza's steadfastness sent a political shockwave".
Lieberman described a Tuesday ceasefire ending the worst escalation between Israel and Palestinian militants in Gaza since a 2014 war as a "capitulation to terror" and announced he was quitting his post.
Israel's security cabinet initially said only that it was ordering the military to continue its operations as required, but two ministers appeared to confirm that it had agreed to accept a ceasefire when they denied that they had supported it.
Israel's defence minister resigned over the Gaza Strip ceasefire and said the country should hold elections "as soon as possible".
Hamas in a statement following Liberman's announcement called his resignation "recognition of (Israel's) defeat at the hands of the Palestinian resistance" and a "victory for Gaza" against the occupation.
"I see the big picture of Israeli security that I cannot share with the public, I wish I could share everything I know", Netanyahu said at a memorial ceremony for Israel's first Prime Minister David Ben Gurion. A firefight erupted that left seven Palestinians and one Israeli dead, and dozens on both sides injured.
Hamas, which has ruled the packed and impoverished coastal enclave since 2007, claimed victory and celebrations broke out.
Dwyane Wade delivers a fiery defense of Carmelo Anthony amid Rockets reports
But Tim MacMahon of ESPN reported after Sunday's game that the Rockets indeed have made a decision to part ways with Anthony. When asked about Anthony's status moving forward, D'Antoni defended his player and insisted nothing will change.
Lieberman's resignation will take effect in 48 hours and Netanyahu will take over on an interim basis.
Israel hit back with major air strikes, with targets including Hamas's Al-Aqsa TV station and internal security headquarters in Gaza City.
He also criticised attempts to broker a long-term truce with the Hamas group. Israel responded with airstrikes on military positions in Gaza and on buildings used by the Strip's terrorist rulers. Netanyahu must call elections by November 2019 at the latest, but the expectation now is that they will be held within the next three or four months. "It's a shame. Instead of helping us and letting us live quietly, they let us suffer".
"A leader does the right thing, even if it is hard", Netanyahu said in defense of the ceasefire.
The only person to die in Israel's border was a Palestinian man from the West Bank, who was killed in the city of Ashkelon.
The flare-up follows a clash that erupted during an Israeli special forces operation in the Gaza Strip the previous night that killed eight people of Hamas movement.
The escalation came despite Netanyahu's decision to allow Qatar to transfer millions of dollars in aid to Gaza for salaries as well as fuel to ease an electricity shortage.
While Netanyahu's party, Likud, said he can handle taking on the responsibilities of defense minister as well, officials from Education Minister Naftali Bennett's party, Beit Hayehudi, have told Israeli press that unless he is given the defense minister, he will pull his party out of the coalition. Israel's widely-criticized practices in Gaza would likely become much more severe should Bennett take charge of the defense ministry.