Israel fires missiles into Gaza

Reuters news agency quoted residents as saying the missiles targeted militants near the Jabaliya refugee camp.

The Israeli army said the strike was against gunmen trying to plant an explosive device near the border.

Earlier this week, Israel's defence minister gave the army permission to target militants firing rockets into Israel.

'Weapons upgrade'

The Israeli army says that since a ceasefire was declared last November, militants have fired at least 200 rockets into Israel.

Israel carried out an air strike last month.

Islamic Jihad said its militants and others from another group were mounting an operation near the border when Israel fired the missiles.

The funeral for the dead militant, Fouad Abu Marouf, was held later on Saturday in the Jabaliya camp.

Two militants were wounded in the attack, Palestinian sources said.

On Monday, Israeli Defence Minister Amir Peretz authorised the army to carry out limited operations against militants in Gaza to try to stop attacks against Israel.

Israeli security sources say Palestinian militants are trying to upgrade their weapons facilities near the border between Gaza and Israel, in order to prepare for future confrontations.