Israel fired missiles into the Gaza Strip today in retaliation for an attack that killed five Israeli troops yesterday.
A video-grap of Palestinians who sneaked more than a ton of explosives through a tunnel, killing five Israeli soldiers
Israeli helicopters fired eight missiles at targets in Gaza City, cutting off electricity when they hit a generator. Another of the buildings hit was a metal foundry, which the army said was used to make weapons. There were no reports of casualties.
Hours later, Israeli troops in the West Bank city of Nablus killed a gunman from Islamic militant group Hamas - one of the factions behind yesterday's attack on an Israeli military outpost at the border between Gaza and Egypt.
Militants have stepped up attacks in Gaza ahead of a planned Israeli withdrawal from the occupied strip next year, hoping to claim a pullout as a victory.
The carefully planned attack on the Israeli post was the army's heaviest loss in seven months. Militants, filming their activities, burrowed underneath and set off a 1,500 kg bomb, turning buildings to rubble and killing five soldiers of a Bedouin Arab unit.
Israel closed the Rafah border with Egypt - the only real access to the outside world for residents of fenced-in Gaza, who are only very rarely allowed to cross into Israel.
The bloodshed underlined the challenge facing moderate Palestinian leader Mr Mahmoud Abbas, whose victory in a January 9th election to replace Mr Yasser Arafat looks likely after jailed uprising leader Marwan Barghouthi withdrew.
Agencies