Gaza residents said there were no casualties from the Israeli attack and that two unmanned lookout posts were hit.
They added that two other shells were also fired from Gaza, but landed inside the Gaza Strip.
The security situation in Israel and the Palestinian territories is febrile following US President Donald Trump's recognition of Jerusalem as the capital of Israel, which Palestinians see as a political and religious red line.
After the assault from Gaza, Israeli jets targeted military sites belonging to Hamas and Islamic Jihad. In the blast and its aftermath, 12 members of the terrorist group were killed, along with two Hamas operatives. He was from the Al-Qarrara town in the Khan Younis district of the southern Gaza Strip.
Israeli army forces stationed at watchtowers and tanks on the borders with Gaza fired live rounds at tens of Palestinian youth protesting near the borders.
A lengthy list of US allies, regional powers and Palestinian politicians warned Trump against recognizing Jerusalem as Israel's capital in the lead-up to his announcement on Wednesday, saying that it would inflame tensions and provoke violence.
The announcement was a major shift by Washington that overturns decades of United States foreign policy.
Both Israelis and Palestinians lay claim to Jerusalem, although Israel has retained control over the city since 1967.