"An explosive balloon launched from the Gaza Strip damaged a house in an Israeli community, apparently after exploding in the air," the Israeli army said in a statement, according to AFP.
In response, Israeli fighter jets and attack helicopters struck a number of targets in a Hamas military compound in the central Gaza Strip, the statement added.
Eyewitnesses in Gaza said a position of Izz ad-Din al-Qassam Brigades, the military wing of Hamas, was targeted in western Deir al-Balah, south of Gaza city late Wednesday.
There were no reports of casualties in Gaza.
At least 251 Palestinians have been killed by Israeli fire since March 2018, the majority shot during weekly border protests and others hit by tank fire or airstrikes.