The closure comes hours before the start of the Passover holiday, when Sinai is a popular destination for many Israelis.
Soon after the announcement, sirens wailed in parts of southern Israel alerting residents to a rocket attack. The military said a rocket fired from Sinai exploded in an open field, causing no injuries.
Intelligence Minister Yisrael Katz said in a statement today there was intel regarding a potential "terror attack" against tourists in the Sinai peninsula. The crossing remains open for those wanting to return from Egypt.
The Israeli government statement says that intelligence information shows "increased activity by Islamic State militants" in Sinai. It adds that with the Islamic State group losing ground in Iraq and Syria, there is renewed "motivation to carry out terror attacks in different arenas at this time."
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Southern Sinai, with its pristine beaches and Red Sea coral reefs, has traditionally been a popular Israeli tourist destination, especially for secular Israelis during the Passover holiday that starts today evening.
Israel issues travel recommendations from time to time based on intelligence reports. Today's travel warning was rare in its urgency.
Israel signed a peace treaty with neighboring Egypt in 1979.
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