The firefight was the deadliest in months.
The military said it opened fire on an armed Palestinian militant who was attempting to cross into Israel and shot one of its soldiers.
The clash reignited violence along the restive border. Israel launched air strikes against targets in Gaza, while militants fired at least two rockets into southern Israel.
-- Edmund Sanders
Photo: Smoke billows from the Gaza Strip as an Israeli army tank monitors the area during an exchange of fire with Palestinian militants. Credit: David Buimovitch / AFP Photo