The grounding of flights came after a rocket landed just 1.6 kilometers away from the city's main air hub -- Ben Gurion International Airport.
The U.S. Federal Aviation Administration has banned all American airliners from flying in or out of Tel Aviv for at least 24 hours beginning Tuesday U.S. time, and European aviation regulators strongly recommended a similar suspension.
Israel called on the U.S. to lift the flight ban saying the airport is safe but Washington didn't budge saying the government cannot overrule the FAA.
Meanwhile, the conflict has now entered its third week, with Israel pounding Hamas targets in Gaza.
The death toll of Palestinians has topped 630, including at least 100 children.
UN Secretary General Ban Ki-moon and U.S. Secretary of State John Kerry are in the region to hold talks with leaders, in hopes of finding a solution.
(English, Reuters 2110EV)
"My message to Israelis and Palestinians is the same: Stop fighting, start talking, and take on the root causes of the conflict so we are not back to the same situation in another six months or a year.
And as for something that could potentially change the dynamics of the conflict Israel confirmed that one of its soliders was missing, raising the possibility that Hamas could use his return as a bargaining chip.
Kim Min-ji, Arirang News.