Palestinians killed by Israeli shelling in northern Gaza

Watch: Two Hamas Terrorists Dead as Israel Returns Fire from Gaza

Watch: Two Hamas Terrorists Dead as Israel Returns Fire from Gaza

The Israeli military has struck a Hamas border post in northern Gaza with a tank shell, killing two members of the Palestinian group's military wing.

"The ship was monitored and was intercepted in accordance with global law", the military said in a statement, before the vessel, named Freedom for Gaza and carrying 12 people, was taken to the Israeli port of Ashdod.

The military said it was prepared "to target any aggression against Israel and holds Hamas responsible for everything happening in and from the Gaza Strip".

"We can make it so that the enemy doesn't know peace", he said, with similar statements coming also from the Palestinian Islamic Jihad.

Hamas and Palestinian health officials in Gaza confirmed the deaths near Beit Lahiya in northern Gaza, shortly before noon.

However, the source said that Israel sent a message to Egypt two days ago, declaring it would not cooperate with the efforts of Cairo to lift the siege completely on Gaza until made aware of the fate of its soldiers, adding that the need to start "formal and serious" talks relating to the exchange deal was a condition that would not be waived.

About 158 Palestinians have been killed and more than 17,000 others injured by Israeli gunfire during the rallies, which take place every Friday.

Israel has fought three wars with Palestinian militants in Gaza since 2008 and says the blockade is necessary to keep them from obtaining weapons or materials that could be used for military purposes.

The two terrorists killed were identified as Ahmed Marjan and Abed al-Hafez al-Silawi, both snipers in Hamas' Izz ad-Din al-Qassam Brigades.

United Nations and Egyptian-led efforts are under way to mediate a long-term truce between Israel and Hamas that would end a four-month surge of violence along the Israel-Gaza border.

Tensions have soared since Hamas launched mass protests along the border in March.

Two months after its construction began, earlier this week, Israel's Ministry of Defense released first footage of the sea barrier it is building along the country's border with Gaza.

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