Israeli soldiers apparently entered the Palestinian territory from Karni crossing on Wednesday and advanced hundreds of meters toward the east of Gaza City.
According to Press TV's correspondent in Gaza, Israeli soldiers dug a series of holes in the area and filled them with explosives.
Israeli soldiers then blew up the explosives, causing loud explosions in the area, our correspondent added.
Israeli officials claim that the troops were searching and destroying "possible tunnels" in the area that could be used by Palestinian resistance fighters to enter Israeli posts and capture Israeli soldiers.
But analysts believe the Israeli attack aimed at provoking Palestinian fighters into firing on Israeli troops, which could have escalated the situation.
It was the first Israeli attack on Gaza after the two main Palestinian factions, Hamas and Fatah, signed a unity deal.
Israel has repeatedly voiced anger at the reconciliation accord signed between the two Palestinian groups which aimed at forming a Palestinian unity government.
Hamas, which controls Gaza, and Fatah which rules the West Bank, have been at odds since the Palestinian resistance movement of Hamas won the Palestinian parliamentary elections in January 2006.
Differences between the rival groups peaked in June 2007 when Hamas took over the Gaza Strip in a bid to "foil a coup plot" by some Fatah elements.
Fatah in response sacked the Hamas government and set up a parallel cabinet in Ramallah.
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