At least six Israelis were killed and 25 more injured during a multi-staged terrorist attack Thursday near Eilat, a resort town near the Egyptian border.

Details are still emerging, but the attack started when terrorists started shooting at an Egged bus at around noon Israeli time. Then, bombs exploded near an Israeli military patrol at the Egyptian border. Terrorists then fired anti-tank missiles at a bus and a private car.

Israeli media reports indicate anywhere from two to seven terrorists were killed by soldiers.

The attackers are believed to have entered Israel through the Egyptian border, but Israeli Defense Minister Ehud Barak says the terrorists came from Gaza, and indicated that is where retaliation will be focused.

"The incident shows the weakening Egyptian grip on Sinai and the widening operation of terrorists there," Barak said. "The source of these terror acts is in Gaza and we will act against them with full force."

Updated 12:55 p.m.:

Israeli Defense Forces working with Shin Bet struck targets in Rafah in retaliation for the Eilat attacks. Officials claim five people were killed, including Kamal al-Nairab, who leads the Popular Resistance Committees (PRC).

Israeli officials believe the PRC is responsible for Thursday's terrorist attacks. Meanwhile, a search continues for other terrors who participated in the attacks.

Hamas, which controls Gaza, issued a statement praising the terrorist strike, but denying any involvement.