The Israel Air Force (IAF) blasted smuggling tunnels along the Philadelphi Corridor in southern Gaza late Tuesday night. The bombing run was a response to an Arab attack earlier in the day that killed one soldier and wounded three others.

Pilots reported hitting their targets, and the planes returned safely.

Local Arabs said there were three separate attacks in the Rafiah area, where thousands of residents reportedly fled their homes.

On Tuesday afternoon, the IAF carried out a strike in northern Gaza, critically wounding one of the terrorists responsible for Tuesday morning's attack.

After the afternoon strike, outgoing Prime Minister Ehud Olmert warned that Israel's response was not yet complete. He told senior government officials that the response would be “harsh and disproportionate.”

The Cabinet will hold a Wednesday morning meeting during which ministers will discuss Israel's response to the bombing.