Hamas, Islamic Jihad in ceasefire with Israel in Gaza Strip

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"Egyptian and global efforts succeeded in ending the current round of escalation", a Palestinian official told Reuters.

Israeli military spokesman Lieutenant Jonathan Conricus said the objective of Saturday's operation was to stop arson attacks, attempted border breaches, and assaults on soldiers from Gaza that have grown increasingly violent.

Israel's military said Palestinian protesters hurled grenades, explosive devices and fire-bombs toward the Israeli soldiers across the border fence.

The cause of the blast, hours after a ceasefire between Israel and Palestinian militants in the enclave was announced, was not immediately known.

The Israeli assault targeted dozens of Hamas military facilities and killed two Palestinian teenagers.

The Israeli attack was the largest daytime airstrike campaign in Gaza since the 2014 war, striking some 40 Hamas targets in the southern Gaza Strip, including a tunnel and other military compounds which were said to be involved in a recent spate of arson attacks using kites and balloons.

Palestinian health officials said two people were killed and 12 injured in an air strike in Gaza City on Saturday.

There have been no serious Israeli casualties during the so-called "Great March of Return" but big tracts of Israeli land have been ravaged by fires set by incendiary kites or helium balloons flown in from Gaza.

About 17 rockets were fired at Israel, the military said, five of which were intercepted by the Iron Dome aerial defence system.

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An IDF officer was wounded Friday when a live grenade was thrown at him by terrorists who attacked him and other soldiers under the cover of "rioting" at the security fence along the border with northern Gaza near the former Karni Crossing close to Kibbutz Nahal Oz - the site of numerous terror attacks.

The Gaza health ministry said a 15-year-old and a 16-year-old died after an Israeli warplane struck an empty building west of Gaza city.

"Our message to Hamas is that we can and will enhance the intensity of our effort if needed", Israeli Lieutenant Colonel Jonathan Conricus warned. It said paramedics in the southern city of Sderot were treating a 52-year-old man with a chest wound, a 17-year-old girl with a face wound and a 20-year-old woman with injuries to her limbs.

More than 130 Palestinians have been killed in the Israel-Gaza border protests which have entered their fourth month and have drawn a lethal Israeli army response which describes them as violent.

In Israel, air raid sirens sent people rushing to shelters in areas surrounding the Gaza Strip as rockets and mortars were fired from the Palestinian enclave at nearby communities.

Hamas, which rules Gaza, claimed its rocket firings were a response to Israeli strikes, adding that the organization would cease launching projectiles if the Jewish state stopped attacking targets in the Strip.

Since then, Israel has maintained a crippling blockade on Gaza which it argues is necessary to isolate Hamas.

Hellis was killed on Friday at a border protest.

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