Palestinian news agency Ma'an identified the two as Muhammad al-Fasih, 24, from Gaza City, and Usama al-Hassumi, 29, from Beit Lahia in the northern Gaza Strip, senior members of Al-Nasser Salah al-Din Brigades, the military wing of the Popular Resistance Committees.
Defense Minister Moshe Ya'alon said one of the terrorists "has in recent days been responsible to rocket launching at southern Israel, and was planning additional terror attacks against the citizens of Israel."
"We don't intend to ignore any fire at Israel or any attempt to hurt our citizens and the IDF's soldiers. We will chase after, and strike with a heavy hand, anyone who hurts or plans to hurt us, as we have done today," he added, warning that Israel "views Hamas as responsible for anything that happens in the Gaza Strip, and it mustn't test our patience or resolve."
IDF spokesperson Peter Lerner said that "Militants like Hassumi and Fasih, attacking Israel from Gaza, are not safe, do not have immunity, and will not be free to plan, plot and operate. We will continue to strike the instigators and agitators with patience, determination and precision. Gaza rocket terrorism does not pay."
Palestinian sources said that an IAF aircraft struck a civilian vehicle driving near the Al-Shati refugee camp in the center of the Gaza Strip. The sources said the attack occurred close to Hamas leader Ismail Haniyeh's home.
The IAF strike came in response to an explosive device planted near the border fence detonated on Friday morning on the Gaza side of the border. No one was hurt on the Israeli side, and light damage had been caused to an IDF vehicle on routine patrol in the area. IDF responded with artillery fire towards "lookout posts used to guide the attack against the forces."
Palestinians report four were wounded by IDF fire, including an 11-year-old boy who was in serious condition.
Reuters contributed to this report.