Israeli aircraft have struck at tunnels used for smuggling goods and weapons on the border between the Gaza Strip and Egypt. It comes just hours before a US peace envoy was due to arrive in the Jewish state. Residents of the Gaza town of Rafah and Hamas security officials said some people began to flee their homes in panic as the aircraft struck three times before dawn. An Israeli army spokesman confirmed that Israel had carried out air strikes on smuggling tunnels in the town of Rafah. The strike came as a response to Tuesday's attack by Gaza militants on an Israeli military vehicle that was hit by a roadside bomb, killing one soldier and wounding three others. The exchanges were the first major military developments since Hamas and Israel declared separate ceasefires earlier this month after Israel's offensive against the Gaza Strip. Israel and Hamas are negotiating through Egyptian mediators on a longer-term truce. Hamas wants Israel to lift its blockade of the Gaza Strip while Israel wants guarantees that Hamas will not again fire rockets at Israeli towns. US Middle East envoy George Mitchell is due to arrive in Israel to take the first steps towards reviving the Israeli-Palestinian peace process. He will meet Israeli leaders and visit the West Bank to talk to Palestinian leaders, but said he would not meet Hamas officials.