The Israeli military says it has targeted a Hamas military post in northern Gaza after militants opened fire, and Hamas says two of its fighters were killed.
The clash took place just before midday today amid Egyptian efforts to broker a cease-fire between Israel and the Palestinian militant Hamas group, which controls the coastal strip.
The military said an Israeli tank shelled the Hamas post after troops came under fire.
It released a video appearing to show militants shooting from a watchtower, then a tank shell hitting the position.
Tensions have soared since Hamas launched mass protests along the border in March.
At least 160 Palestinians have been killed by Israeli fire, including at least 120 in protests near the border fence.
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