Israel bombed Hamas targets in the Gaza Strip Sunday, hours after its Cabinet threatened a "harsh and disproportionate" response to fresh Palestinian rocket and mortar attacks into southern Israel.

The Hamas militant group that runs Gaza said Israeli aircraft bombed an unoccupied police station and at least six tunnels used to smuggle weapons and goods from Egypt into the Palestinian enclave.  There were no reported casualties in the air strikes.

Earlier, Palestinian militants fired at least seven rockets and mortar shells into Israel, wounding two people.  One rocket slammed into a collective farm near a kindergarten but failed to explode. 

Hamas has not taken responsibility for, or condemned, the new attacks. Some of them have been claimed by members of the militant al-Aqsa Martyrs Brigades.

Hamas demanded that Israel open its border crossings with Gaza as part of a cease-fire.

Israel said that will not happen until Hamas releases a captive Israeli soldier held in Gaza for 2.5 years.

Meanwhile, Egypt began installing surveillance cameras and motion sensors on its border with Gaza as part of efforts to crack down on tunnels used by weapons smugglers.

The Egyptian government is trying to hammer out a long-term truce acceptable to both sides.

Some information for this report was provided by AFP, AP and Reuters.