An Israeli air strike has killed two suspected affiliates of Palestinian group the Popular Resistance Committees (PRC) in the Gaza Strip, according to Palestinian medical officials.

The incident also wounded a third person when the car carrying the suspects was struck travelling along a coastal road near a Gaza refugee camp.

The Israeli military said that the three men had been targeted because they were "involved in firing at Israel in recent weeks and were planning serious terror attacks against Israeli residents."

Earlier violence saw four Palestinians, including an 11-year-old boy, wounded by Israeli fire at the Israeli-Gaza border after rockets were fired into Israeli territory from the area.

The Israeli army said that in retaliation for the rocket attack, tanks retaliated with "fire towards lookout posts used to guide the attack against the forces."

Following the kidnap of three Israeli students, all settlers, in the occupied West Bank, Israel has conducted large-scale operations against the Palestinian people, arresting 410 people, searching 1,350 sites and killing six Palestinians.

They have named the two men suspected of perpetrating the alleged kidnapping as Marwan Qawasmeh, 29, and Amer Abu Aisha, 32, who have both been arrested by Israeli forces several times.

Hamas has denied any involvement in the disappearance of the students and the faction's leader Khaled Meshaal has said that "we do not have information about what happened."