GAZA CITY, (Palestinian Territories): The Israeli air force attacked two sites in Gaza on Sunday, the army said, after Gazans clashed with forces on the border and launched incendiary balloons into southern Israel.

The latest escalation came as Israel and Egypt continued to relax restrictions on commerce and travel imposed on the Gaza Strip, largely cut off by both countries since the Islamist movement Hamas seized the Palestinian enclave in 2007. Israeli "fighter jets struck a Hamas military compound used for manufacturing weapons and training as well as an entrance to a terror tunnel adjacent to Jabalia," the Israeli army said.