The Israeli Defence Forces say they identified one rocket launched from the Gaza Strip into Israeli territory on Sunday.
Israeli forces later said they retaliated with airstrikes targeting Hamas training and military infrastructure in the southern Gaza Strip.
Tensions have been high on the border recently, with several launches from across the border already this week. Israeli forces responded with strikes on what they said were Hamas facilities in Gaza.
Earlier on Monday, the IDF said it was moving its Iron Dome air defence systems further south amid an increase in rocket and incendiary balloon launches from the Gaza Strip.
The situation in Gaza escalated after the Trump administration unveiled its "deal of the century" aimed at restoring peace in the region. The plan envisages Israel's annexation of settlements in the West Bank and the Jordan Valley and secures Jerusalem as its undivided capital.
Israeli prime minister Netanyahu earlier pledged to annex the Jordan Valley if re-elected in the March election.
The Palestinian Authority rejected the deal and said it was cutting ties with both the US and Israel. The Arab League foreign ministers' extraordinary meeting similarly rejected the deal and urged the international community to counter any Israeli attempt to implement it.