Witnesses say Israeli aircraft have fired two missiles in Gaza City as part of an offensive against Palestinian militants.
The witnesses say a local Hamas commander and two other people were wounded. Israel has not commented on the strike, which came hours after Israeli Prime Minister Ariel Sharon vowed to expand the offensive in Gaza to stop Palestinian militants from firing rockets into southern Israel.
On Sunday, thousands of Israeli troops and backed by tanks pushed into Gaza's Jabaliya refugee camp while other forces opened a new front in Khan Younis.
Early Monday medics recovered the bodies of three Palestinians near Jabaliya after residents reported hearing gunfire.
At least 65 Palestinians and five Israelis have been killed since Wednesday's rocket attack that sparked the Israeli incursion.