On the morning of 25 June 2006, a squad of seven or eight Palestinian militants from the Gaza Strip crossed into Israel through a roughly 300-meter tunnel dug near the Kerem Shalom border crossing. The group split into three cells and attacked Israel Defense Forces (IDF) positions, including a Merkava Mark III tank, a watchtower, and an armored personnel carrier used as a decoy, while other militants inside Gaza provided covering mortar and anti-tank fire.
During the assault, militants disabled the tank with an RPG, killed its commander and driver as they tried to escape suffocating conditions inside the vehicle, and wounded other crew members. Corporal Gilad Shalit, the tank's gunner, was wounded and subsequently taken into Gaza by the militants. Two Israeli soldiers, Staff Sergeant Pavel Slutzker and Lieutenant Hanan Barak, both 20 years old, were killed in the attack. Two militants — identified as Muhammed Farawneh of the Army of Islam and Hamed Rantisi of the Popular Resistance Committees — were killed by IDF fire during the raid. Additional IDF soldiers were wounded, and three more were lightly injured by explosive charges left behind by the retreating militants.
Responsibility for the raid, described by the attackers as "Operation Dispersive Illusion," was jointly claimed by Hamas's Izz ad-Din al-Qassam Brigades, the Popular Resistance Committees, and a previously unknown group called the Army of Islam. The groups said the attack was carried out in retaliation for an Israeli shelling and preceding air strikes that had killed 22 Palestinians earlier that month, including the assassination of Jamal Abu Samhadana on 8 June 2006.
Shalit's captors initially offered information about him in exchange for the release of Palestinian women and minors held in Israeli detention; Israel rejected this and subsequent demands, including a call for the release of 1,000 prisoners. On 28 June 2006, Israel launched Operation "Summer Rains," a series of military incursions into Gaza intended to secure Shalit's release, alongside the arrest of numerous Hamas officials in the West Bank. The operation did not recover Shalit and concluded on 26 November 2006 with a ceasefire agreement between Israeli Prime Minister Ehud Olmert and Palestinian Authority President Mahmoud Abbas.
Shalit remained in captivity for over five years. In October 2009, Israel received a video of him in exchange for releasing 20 Palestinian prisoners. He was ultimately released on 18 October 2011 as part of a larger prisoner exchange. Hamas commander Abu Jibril Shimali, whom Israel held responsible for coordinating the abduction, was killed in 2009 during clashes in Gaza, and Raed al-Atar, described as having directed the raid, was killed in an Israeli airstrike during the 2014 Israel–Gaza conflict.