Israeli Defense Forces (IDF) confirmed an air strike on a car in Gaza City Thursday targeting Islamic Jihad (Holy War) militants.
Two militants from the Islamic Jihad jumped out of the car before it was hit, witnesses said.
The attack came as the Israeli army continued air and ground operations throughout the Gaza Strip and the West Bank to press for release of an abducted Israeli soldier.
The IDF troops were poised to pour into the northern Gaza Strip early Thursday after the second stage of Operation Summer Rains was authorized by Defense Minister Amir Peretz.
Peretz said every operation of IDF should be thoroughly examined "in this most critical moment", and the possibility of a breakthrough in compelling Palestinian militants to release Cpl. Gilad Shalit still exists, Israeli newspaper Ha'aretz reported.
The IDF confirmed that at least 60 Hamas government ministers, parliament members and activists were arrested during a swift operation carried out overnight in Ramallah, Nablus, Qalqilya, Jenin and Jerusalem.
The IDF launched Operation Summer Rains in the Gaza Strip early Wednesday after an Israeli soldier was kidnapped by Palestinian militants during a predawn attack on a military post near Gaza border on Sunday.
Two Israeli soldiers and two Palestinian militants were killed in the battle.
Israeli Prime Minister Ehud Olmert has vowed to take "extreme actions" to bring the kidnapped soldier home.