Two masked gunmen fired on Israeli soldiers from across the Egyptian border on Sunday evening.

No injuries were reported and the gunmen escaped into the Sinai desert in an all-terrain vehicle.

The IDF has not ascertained whether the gunmen were local Bedouins, or Palestinians who had crossed into Egyptian territory.

Gun battles between the attackers and Egyptian forces continued near the border, Channel 10 reported.

The incident occurred just west of the town of Nitzana. The IDF had raised the alert level for settlements in the area, and instructed residents to remain in their homes. Several hours after the incident, residents were given the “all clear” and told to resume normal activities.

The shooting comes against the backdrop of an uptick in attacks against Egyptian forces in the Sinai, who have been battling to clean out Islamist terrorists from the peninsula.

Egyptian forces launched a major offensive last week following a series of attacks against army positions in the northern Sinai and near the border with Gaza.

Some 37 terrorists have been killed by Egyptian forces in the Sinai since the overthrow of Islamist president Mohammed Morsi nearly two weeks ago.