The Israeli Army closed off the Gaza Strip before dawn this morning, citing security concerns.
Israeli troops, backed by helicopters and tanks, raided the town of Rafah in the Gaza Strip before dawn.
Two members of the Al-Aqsa Martyrs Brigades were killed and two Palestinians wounded during the incursion, in which the soldiers used bulldozers to destroy two houses.
The Gaza Strip has now been sealed off; its reopening lasted only 24 hours.
The move will come as a particular blow to 15,000 Palestinians who only yesterday received authorisation to return to work.
The move also came only hours after officials met visiting US Secretary of State Colin Powell, who is in the region on a peace mission.
Mr Powell called on Israel and the Palestinians to act immediately towards ending the ongoing conflict.
He also briefed members of the Middle East diplomatic quartet on the progress so far. He reiterated his commitment to the so-called roadmap for peace in the Middle East and called for its immediate implementation.
He has now arrived in Egypt for the next leg of the talks.
Egyptian President Hosni Mubarak- who also met EU foreign policy chief Javier Solana - said that although he recognised the difficulties inherent in the plan, the very existence of the roadmap had created some hope.
