Egypt's Muslim Brotherhood said on its website that the attack on a police station in Sinay on Sunday in which 16 policemen were killed "can be attributed to Mossad" and was an attempt to thwart Islamist President Mohamed Morsi's new regiem.
The statement claimed that the Israeli intelligence agency was trying to hinder the Egyptian uprising that toppled president Hosni Mubarak in 2011 and that it was "imperative to review clauses" of the 1979 peace treaty between Egypt and Israel.
Israel dismissed the claim: "Even the person who says this when he looks at himself in the mirror does not believe the nonsense he is uttering," Foreign Ministry spokesman Yigal Palmor said.
IDF Initial inquiry reveals terror cell came within 2km of Israeli communities before was stopped by Israel security forces.
According to the sequence of events, the armored vehicle barged through the first set of concrete barricades but the truck was unable to do so. At this point, apparently disoriented, the terrorists veered towards the route parallel to Highway 10 in southern Israel, instead of heading east, to the nearby Israeli communities.
According to the IDF, troops scrambled to the area engaged the terrorists, but armored vehicles are meant to withstand such fire. The terrorists then veered towards Route 232, the Gaza vicinity area's main highway. Some 50 meters on another IDF force engaged the terrorists, this time with machine guns, but the vehicle carried on.
At this point the truck bomb exploded near an abandoned military pillbox adjacent to the Kerem Shalom crossing, while the terrorist vehicle forged on through more IDF fire.
Next, the IAF scrambled aircraft to the area, while the GOC Southern Command mobilized a tank near kibbutz Sufa, to block any further advancement. Several tanks were mobilized as well to circle the vehicle from the rear, creating a vise.
As the troops closed in on the vehicle, two of the terrorists opened fire at their surrounding, but luckily no injuries were reported.
IDF tank fire followed, setting the vehicle ablaze. Two of the eight terrorists in the armored vehicle were killed by Paratroopers' fire.
Simultaneously, IDF forces were deployed along various routes in the area, to ward off any potential terrorist infiltration of the Israeli communities.
The IDF added that the terrorists were found to be in possession of explosive vests.
Egypt deployed at least two helicopter gunships to the Sinai Peninsula in the hunt for terrorists behind the terror attack.
Morsi, who visited the scene on Monday vowed to bring the terrorists to justice, while Cairo officials added that if need be, "We'll strike Gaza, as well."
Hamas rulers in Gaza are wary of an Egyptian response to the border attack, as other than the military implications of such retaliation, Egypt turning its back on the Gaza Strip is one of the worst case scenarios for the Strip's government.
The IDF has released a video of the aerial strike on the Sinai terror cell that attempted to breach the Israeli border on Sunday night.
The footage shows the strike on the armored vehicle driven by the terrorists. The vehicle was obtained after they killed 16 Egyptian soldiers in an ambush near the border.
Israel transferred the remains of the terrorists killed in Sunday's attack near the Kerem Shalom border crossing to Egypt. The charred remains of the armored vehicle struck by the IAF as it was attempting to breach the border, was also returned to Egypt.