An IDF tank destroyed a Hamas watchtower after shots were fired at Israeli soldiers near the Gaza border.
Hamas issued a statement threatening to retaliate for the deaths.
Ran Goldstein, the head of the Israel-based Physicians for Human Rights, told the state-run Israeli Broadcasting Corporation that Hamas had told him that "the video sent by the family of Avraham Mengistu to their son about two years ago has been passed on".
"Israel is coming up with false allegations to justify its serious crime", Al-Qassam said, "We hold the occupation fully responsible for this attack". It then cuts to footage of a shell hitting the post and an explosion.More news: More than 100 shooting stars expected in weekend’s Perseid meteor shower peak
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United Nations and Egyptian-led efforts are under way to mediate a long-term truce between Israel and Hamas that would end a four-month surge of violence along the Israel-Gaza border.
Hamas' military wing, the Ezzedine al-Qassam Brigades, confirmed in a statement that the dead men were its fighters and named them as Ahmad Murjan and Abdel-Hafez al-Silawi.
The first half of 2018 has been deadly for Palestinian children, with at least 35 children killed by Israeli forces in the occupied West Bank and besieged Gaza Strip, according to Defense for Children International - Palestine (DCIP).
On Monday, Israel responded to the launching of flaming balloons from Gaza into southern Israel by launching an airstrike, injuring two Gazans.