Defence Minister Avigdor Lieberman said: "Destroying the network of offensive tunnels is an essential component in our policy of systematically damaging the strategic abilities of Hamas".
The Egyptian navy opened fire on a Palestinian fisherman at sea and killed him, the Gaza Ministry said on Saturday.
The tunnel destroyed early Saturday morning is believed to have been a Hamas tunnel which stretched for nearly a kilometer running under the Kerem Shalom crossing near the gas pipeline and continued into Egyptian territory.
'It could also have served to transfer terrorists from the Gaza strip into Egypt in order to attack Israeli targets from Egypt'.
The Israeli military said it has destroyed three such tunnels in the past two months, but that it was not seeking escalation.
"Some time ago, the Israel Defense Forces, using aviation, attacked the terrorist infrastructure in the area of southern [Palestinian city of] Rafah near the Egypt-Gaza Strip border", the press release reads.
Israeli PM Netanyahu on India visit; eyes trade
Daniel Carmon, the Israeli ambassador to India, said that the Israeli-India ties would withstand any troubles. Among other agenda of the day, External Affairs Minister Sushma Swaraj will call on the visiting dignitary.
Last week, the IDF struck what many assumed to be a tunnel in the Gaza Strip, following a series of mortar attacks.
"The Hamas terrorist organization is responsible for everything happening in and out of the Gaza Strip", the press release added.
In addition, they said Israel has been constructing a sensor-equipped underground wall along the 60-km (36-mile) Gaza border, aiming to complete the $1.1 billion project by mid-2019.
On Saturday night the IDF announced it would be closing the Kerem Shalom crossing after an assessment of the current security situation, but did not provide further details. Unique about this tunnel, the IDF said, is that "it clearly was not a tunnel for smuggling merchandise, but specifically made for attacks".
Unrest has included rockets being fired from the Gaza Strip into Israel, with Israel's military responding with air strikes.
On Friday, approximately 1,000 Palestinians took part in violent demonstrations in four separate locations along the security fence surrounding Gaza, rolling burning tires and throwing rocks at the barrier and the soldiers on the other side, according to the Israel Defense Forces.