Two Palestinians killed during Israeli shelling in Gaza

Watch: Two Hamas Terrorists Dead as Israel Returns Fire from Gaza

"In response to terrorists shooting at IDF forces in the northern Gaza Strip, an IDF tank attacked the position belonging to the Hamas terror group where the attack originated", the army said.

Israel says Hamas, which rules Gaza, is using the protests as cover to carry out cross-border attacks.

The Al-Qassam Brigades, the armed wing of Hamas, issued a statement denouncing the Israeli assassination of two of its fighters, in northern Gaza, and holding Israel accountable for any future escalation.

The incident comes as the United Nations and Egypt continue to try to broker a deal for a lasting ceasefire between Israel and Hamas, which dominates Gaza.

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It said Ahmad Morjan and Abed el-Hafeth el-Sillawi, both aged 23, were killed in the shelling, adding that no injuries were brought to hospital.

Two months after its construction began, earlier this week, Israel's Ministry of Defense released first footage of the sea barrier it is building along the country's border with Gaza.

More than 160 Palestinians have been killed by Israeli forces - most during weekly protests at which thousands of Palestinians have expressed their support for the declared right of Palestinian refugees to return to their ancestral homes in what is now Israel. No Israeli soldiers were injured in the Hamas attack.

Israel has lost tracts of farmland and forest to fires started by kites and helium balloons laden with incendiary material which have caused fires in Israeli forests and farmlands and flown over the border by Palestinians in Gaza.

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