(Bloomberg) — Israeli and Egyptian troops exchanged fire near the city of Rafah, according to Israel’s Army Radio, in what’s potentially a major escalation in tensions between the two nations.

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The Israel Defense Forces acknowledged there had been “a shooting incident occurred on the Egyptian border,” without giving any more detail. “The incident is under review and discussions are being held with the Egyptians.”

Army Radio said Egyptian troops first opened fire at Israeli soldiers at the Rafah border crossing between Gaza and Egypt.

Israeli troops started operations around the outskirts of Rafah early this month. The government’s said it will attack the city at some stage because several thousand Hamas fighters are lodged there.

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