At least six people, including a child, were killed on Thursday during an Israeli air strike on a residential house in western Rafah in the south of Gaza, a medical source said.
Local media said the air strike targeted a group of gunmen from the Palestinian militant group Popular Resistance Committees. Media reports said the rockets killed commander of the Rafah group Abu Awad Kamal Al Nairab, and Imam Hamad, a field commander.
Israeli Defense Minister Ehud Barak earlier accused the Gaza gunmen of organizing Thursday's attacks in Eilat that killed seven Israelis.
Gunmen opened fire at a tour bus near Eilat, a popular Red Sea resort, and then fired an anti-tank rocket at another bus, also hitting a car. At the same time, gunmen attacked an army patrol on the Israel-Egypt border.