Israeli aircraft have carried out three bombing raids on the Gaza Strip, killing one man and injuring another.
Palestinian officials said at least one other person was missing after the raids, which targeted tunnels used to smuggle in goods from Egypt.
The Israeli army said the raids were in retaliation for attacks against Israelis over the past week.
It comes days after the start of direct peace talks between Israeli and Palestinian leaders.
The talks, are the first direct peace negotiation in nearly two years.
Officials from the Islamist movement Hamas, which controls the Gaza Strip, told the Associated Press agency that the men were smugglers working in tunnels under the Gaza-Egypt border.
Earlier in the day, Israeli officials said a rocket had been launched from Gaza into southern Israel.
On Tuesday, four Israeli settlers were shot dead in the West Bank, in an attack Hamas said it carried out.
Two Israelis were also injured in a shooting in the West Bank on Wednesday.
The US Secretary of State Hillary Clinton said the latest round of direct talks between Israelis and Palestinians may be "the last chance for a very long time" to resolve the conflict.