Israel has been bombarded with mortar shells from Gaza, just as peace talks between Israel and Palestinian leaders moved to Jerusalem.
The ABC reports Israeli planes bombed targets in Gaza in response to mortar and rocket attacks by Palestinians.
The Israeli military says eight mortars and one rocket hit Israel within one day. It was the highest daily number of missiles in 18 months.
Israel responded by bombing a smuggling tunnel along the Gaza-Egypt border.
Hamas, which rules Gaza, says one person was killed and four were wounded. No one was hurt in Israel.
A Palestinian group, the Popular Resistance Committee, claimed responsibility for the missile attacks. Along with Hamas, it is strongly opposed to the new peace talks.
Israeli and Palestinian leaders have agreed to meet every fortnight for a year with the aim of reaching a lasting peace agreement. US Secretary of State Hillary Clinton was in attendance in Jerusalem on the second day.