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The Israeli military have released a video showing what they say is the tunnel used by about a dozen Hamas fighters last night as they attempted to attack Sufa in southern Isreal.
Hamas have said the mortar attack that landed in southern Israel was from "one of the smaller military factions" that operate in Gaza.
In other words: Not them, they say.
The Israeli military have not fired back so far.
People in Gaza have been crowding outside banks and around markets to stock up on money and food during the five hour humanitarian ceasefire called by Israel and Hamas.
Three mortar attacks appear to have broken the truce in southern Israel.
ITV News correspondent John Ray is in Tel Aviv:
About dozen Palestinian fighters tunnelled under the Gaza border last night, emerging near an Israeli community, the Israeli military said.
Video released by the IDF appears to show the fighters emerging from underground before being shot at.
At least one of the fighters was killed when Israeli aircraft bombed the group.
A five hour humanitarian ceasefire is currently in operation, at the request of the United Nations.
The humanitarian ceasefire between the Israeli military and Hamas has started in Gaza.
The Israeli military and Hamas have both agreed to respect a five-hour ceasefire in Gaza after nine days of fighting, after a request from the United Nations.
- At 8am (0700 GMT) Israel's military said it would stop airstrikes for five hours to allow people in Gaza to attend to humanitarian needs.
- The UN said they are "extremely concerned" about the impact of the hostilities on civilians and said public services had been suspended and its water supply was at risk.
- The "humanitarian pause" in the deadly violence was called for by United Nations Special Coordindator Robert Serry on an Israeli television station last night so that aid can be delivered to Gaza.
- Hamas said it accepted the UN plea and would not fire rockets into Israel during the time.
- The United Nations has said over 75% of the 220 Palestinians killed have been civilians. One Israeli has died since the fighting broke out 9 days ago.
Israeli forces have stopped at least a dozen Hamas gunmen who tunnelled in from the Gaza Strip for an attack, a military source said, adding that there were several Palestinian casualties.
No Israelis were killed in the infiltration near a southern Israeli community, Reuters reported.
European leaders have condemned the ongoing rocket attacks and air strikes between Israel and Gaza as violence continues in the region.
French President Francois Hollande and German Chancellor Angela Merkel called on both sides to adopt a cease-fire.
Mr Hollande said a ceasefire must be observed "especially in Gaza and to strengthen pressure on countries that could influence Hamas in order to reach a truce and to spare the civilians."
Angela Merkel stated that Israel has the right to defend itself but said a "limited cease-fire has to be used and benefited from."
US President Barack Obama has reiterated his support for Egypt's attempt to reach a cease-fire between Israel and the Palestinians, to stop more deadly clashes.
"The Israeli people and the Palestinian people don't want to live like this," he said.
He said he would continue to encourage a diplomatic outcome.
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It's been an emotionally exhausting day in Israel and Gaza as hopes for peace were raised then dashed then raised then dashed again.
In the court of international opinion, this is how Israel wins a battle and still manages to lose the war.