Dozens of rockets have been fired at southern Israel after Hamas promised revenge for Israeli airstrikes on Gaza.
The Palestinian Islamist movement said one Israeli strike near Rafah killed five of its fighter.
But the Israeli military said the men appeared to have died after handling explosives in a tunnel that had been hit on Thursday.
Tensions have risen since a Palestinian youth was killed in apparent reprisal for the murder of three Israelis.
On Sunday, Israeli police said they had arrested six Jewish suspects in connection with the death of Mohammed Abu Khdair last week.
The Israeli military said early on Monday it had hit "terror sites and concealed rocket launchers" in response to earlier rocket and mortar fire from Gaza.
Hamas's military wing, the Izzedine al-Qassam Brigades, said Israeli aircraft had targeted a "resistance location" near the southern city of Rafah, believed to be a reference to the tunnel.
It initially said six of its members had died, but sources later told the BBC that one man was still alive.
A Hamas spokesman accused Israel of a "grave escalation" and promised they would "pay a tremendous price". There is no word on damage or casualties for Monday evening's rocket fire.
Source:BBC
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