Israeli Air Force aircraft struck two Hamas targets in the southern Gaza Strip overnight Monday, according to the army.
Palestinian sources did not report any injuries in the attacks, one of which was said to have hit the Islamist group's military wing, reports Xinhua.
Following the strikes, militants on Tuesday morning fired two mortar shells towards Israeli territory. No injuries were reported.
The Israeli retaliation came in response to a shooting and rocket attack against Israeli targets earlier Monday.
In the first attack, a sniper fired heavy machine gun at an Israeli civilian car near the coastal enclave's northern border.
While there were no injuries, the shells hit the vehicle and a baby carrier in the back seat, shortly after the mother had taken the infant out of the car.
"Had I been in the car, I would have probably been killed," Yocheved, the seven-month-old's mother, told Ynetnews.
Later on Monday, Gaza militants fired a rocket into the nearby Ashkelon regional council. No one was hurt.
The Israel Defense Forces (IDF) raised the alert level in the Gaza border communities in the wake of the separate attacks, in light of the rising tension.
The IDF spokesman said that the army "would not hesitate to act with determination against any elements that use terrorism against the residents of Israel," and added that it holds Hamas responsible for the attack.
In June, about ten rockets were fired at Israel from the Gaza Strip. Some 270 rockets were fired into Israel since the beginning of the year.