Israel Air Force aircraft targeted a car in Gaza City on Sunday evening, the military said, killing an Islamic Jihad militant and wounding two people.

It was the first IAF strike on Gaza militants since Hamas seized control in Gaza earlier this month.

The attack took place in the eastern part of Gaza City, a known stronghold of Islamic militants.

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Israel has frequently targeted Gaza militants in airstrikes, with the goal of curbing the frequent rocket barrages from Gaza at Israeli border towns.

Sunday's strike targeted an Islamic Jihad cell believed to be responsible for Qassam rocket fire during the past several days, including two rockets that damaged two houses in the western Negev town of Sderot Sunday morning.

Islamic Jihad said the vehicle was carrying its members on a holy mission, referring to an attack on Israel. Hamas TV footage showed the burned car with at least one rocket inside.

The group said the dead man had participated in many missions, largely rocket launchings.

The Israel Defense Forces confirmed that its air force carried out the airstrike, targeting a rocket squad on its way to an attack.

Hamas spokesman Sami Abu Zuhri, blamed Israel. "Israeli attacks are continuing on Gaza, and there are responses from the resistance to these attacks," he said.

Islamic Jihad identified the dead man as a senior local commander in the group's rocket firing unit. Another person in the vehicle was seriously injured.

Islamic Jihad has claimed responsibility for more cross-border rocket attacks against southern Israel than any other group since Hamas seized control of the Gaza Strip.

However, Israel had stayed on the sidelines during this month's lightning Hamas sweep through Gaza, when the Islamist forces overran headquarters of security forces linked to the rival Fatah of Palestinian Authority Chairman Mahmoud Abbas.

The airstrike came a day before a scheduled summit meeting in Egypt to be attended by Abbas, Prime Minister Ehud Olmert, Egyptian President Hosni Mubarak and Jordan's King Abdullah II, aimed at boosting Abbas in his conflict with Hamas.