Witnesses said an Israeli helicopter fired a missile into the Jabalya refugee camp in northern Gaza killing the two. Moments later, a Palestinian charity office was bombed and destroyed in a separate helicopter strike.
The latest attack on Wednesday night came after a day of renewed fighting in the occupied territories of Gaza and the West Bank, which saw at least seven Palestinians - including teenagers - being killed in repeated Israeli assaults.
The Palestinians responded by firing a rocket into the southern Israeli town of Sderot, killing two Israeli children.
Earlier during the day, Israel staged four air raids, killing three Palestinians. While Israeli helicopters targeted the Jabalya refugee camp and Gaza City, its troops backed by armoured vehicles and tanks stormed the areas.
The Israeli raid into northern Gaza
left many Palestinians wounded
Dozens of tanks and armoured personnel carriers entered the area on Tuesday night and took up positions around Bait Hanun, Bait Lahiya and Jabalya and near the settlements of Dugit and Eli Sinai.
Israeli Apache helicopters opened fire on the heavily populated Jabalya refugee camp and residential areas in the village of Bait Lahiya, injuring several bystanders, including two children.
Israeli occupation troops killed Hamas and Fatah activists in course of their protracted raid. They also destroyed the water well network in one of the Beduin villages on the outskirts of Jabalya.
Tawfiq Ali Sharafi, 22, was killed and four others wounded during clashes with Israeli troops.
Sharafi reportedly belonged to the Izz al-Din al-Qassam Brigades, the armed wing of Hamas.
Two other Palestinians, one aged 14, were killed by Israeli troops who opened fire on youths throwing stones at Israeli tanks, Aljazeera's correspondent in Gaza reported.
In Netzarim, another Palestinian - aged 17 - was killed and five others were injured.
Palestinian radio reported that Israeli tanks fired at least seven rounds into the residential area, hitting an electrical power transmitter.
Residents said the whole area was blacked out. Israeli bulldozers also demolished several Palestinian homes.
Occupation troops also stormed the West Bank town of Nablus on Wednesday morning killing an al-Aqsa Martyrs Brigades resistance fighter, Majdi Khalifa.
The West Bank town Nablus was
raided on Wednesday morning
Aljazeera's correspondent reported that Khalifa was killed in what seemed to be an "execution-style operation".
Troops entered his house in Haifa Street in central Nablus. Sounds of gunfire could be heard from inside, after which troops were seen dragging his body outside.
Hospital sources later said Khalifa's body had three bullet wounds.
In the West Bank town of Jenin, Israeli troops blew up the family home of local al-Aqsa Martyrs Brigades chief Zakaria al-Zubaidi.
In the same town, Israeli troops on Tuesday killed a mentally-ill Palestinian and detained up to 20 people.
Salah Ailalu, 47, was hit in the stomach by troops who saw him outside after they had declared a curfew, sources said.
Two Israeli children were killed after a Palestinian rocket crashed into the southern town of Sderot.
Palestinians have hit back, firing
a rocket into southern Israel
The director of Barzilai hospital, Emile Hai, said a baby and a young boy were declared dead on arrival. Israel Radio said the boy was four.
Izz al-Din al-Qassam claimed responsibility for firing the Qassam rockets and said the attack was in defiance of the continuing Israeli operations into northern Gaza.
Medics said at least 12 people were wounded in Sderot.
Palestinian fighters have fired hundreds of homemade rockets during their four-year uprising.
Izz al-Din al-Qassam also said it fired six Battar missiles at an Israeli watchtower in the Netzarim settlement to the south of Gaza City and a mortar round at Morag settlement to the north of Rafah, injuring five settlers.