Palestinian witnesses said Hamed Ahmed Abed Khudri was killed in an airstrike on his car.
Israel killed a commander of the Islamic Resistance Movement Hamas in the Gaza Strip Sunday in what the military described as a targeted strike and Palestinians said was the first such action since the 2014 war in the Palestinian enclave.
A military statement said that Hamed Ahmed Abed Khudri had been responsible for transferring funds from Iran to armed factions in Gaza. Palestinian witnesses said he was killed in an airstrike on his car.
During Sunday, rockets from Gaza killed three people in an Israeli city while five Palestinian militants died in surging cross-border fighting that included a return by Israel to singling out enemy commanders for the attack.
Palestinian authorities in Gaza said at least 16 people have already been killed as a result of extensive airstrikes against Gaza, while at least 100 people have been injured, according to local Palestinian media. The killed included a 14-month-old baby and the baby's aunt in an air strike.
Israeli Prime Minister Benjamin Netanyahu said he ordered the military to continue "massive strikes" against Gaza's ruling Hamas group and Islamic Jihad, in the most serious border clashes since a spate of fighting in November.
Palestinian media reported that Israeli fighter jets were targetting multiple locations in the Palestinian strip with deadly missiles and explosives.
The Israeli military said it has hit hundreds of targets in Gaza "belonging to Palestinian militant groups."