Egypt closed the border between Sinai and the Gaza Strip as clashes between its government security forces and protesters backing deposed President Mohamed Morsi continued for a second day.
A jihadist group affiliated with al-Qaida claimed responsibility for a rocket attack on Eilat.
The Egyptian military has asked Israel to allow it to send troops into the Sinai Peninsula for an offensive against terrorists there.
Three weeks ago, militants in Gaza landed a rocket near the Israeli city of Ashkelon.
Egyptian security forces in the Sinai Peninsula reportedly intercepted a shipment of American-made missiles destined for the Gaza Strip.
Four rockets fired on southern Israel are believed to have come from the Sinai Peninsula. The rockets that landed on a moshav and its fields in southern Israel was fired Wednesday afternoon. The attack came a day after the four-day onslaught of rockets fired by terrorist groups in Gaza seemed to have come to an end in a tacit cease-fire brokered by Egypt.
For years, the tunnel economy in the Gaza Strip has flourished. An estimated 1,000 tunnels were burrowed underground, connecting the southern Gaza town of Rafah and the Egyptian–controlled Sinai Peninsula. Everything from new cars (cut up into pieces for shipping) to cigarettes to weapons to drugs came through the tunnels.
Egypt's military said on Wednesday it would broaden its offensive against militants in the Sinai Peninsula, a campaign that has raised concerns in Israel about the movement of heavy armor into the area near its border.
A day after Israel's foreign minister called on Egyptian President Mohamed Morsi to visit Israel, a Muslim Brotherhood official called such a visit impossible.
Drivers who reach the end of Israeli Route 232 purportedly face a choice: A sign points them either northwest, toward the Rafah border crossing between Egypt and the Gaza Strip, or southeast, toward the Nitzana border crossing between Egypt and Israel.
Israel's Cabinet reportedly has agreed to allow Egypt to use gunships in the Sinai peninsula.
The Egyptian army has captured six people it regards as "terrorists" in Sinai after an attack on a police station earlier this week that killed 16 border guards near the border with Israel, a military source told state media on Friday.
Israeli authorities warned Israelis to return immediately from the Sinai peninsula, citing a terrorist threat.
Mohamed Morsi of the Muslim Brotherhood was declared the winner of Egypt's presidential race in its first democratic elections.
Israel reportedly moved tanks close to the border with Egypt following a cross-border attack in which an Israeli civilian was killed.
Former U.S President Jimmy Carter said after what he called long discussions with Muslim Brotherhood leaders in Egypt that the group will try to modify the country's peace treaty with Israel.
Egypt's pipeline carrying gas to Israel and Jordan was attacked for the 14th time in more than a year.
Egypt's new foreign minister said the days of Israel getting cheap gas and strategic benefits are over.
Israel's Air Force attacked what it said was a terror squad planning to kidnap Israelis over the Passover holiday, killing three.
An explosion in an Egyptian natural gas line in the Sinai Peninsula, which cut off supplies to Israel, was the result of terrorism, according to an Egyptian investigation.