JERUSALEM - Israel's military says Palestinian militants in Gaza have fired a Grad rocket at southern Israel, and Israel retaliated with an airstrike.

The military said the rocket exploded in an open area. No one was hurt.

Israeli aircraft targeted the militants who fired the rocket late Thursday from eastern Gaza City. Palestinian hospital officials said two people were wounded.

Grad rockets have a longer range than the homemade rockets Gaza militants often fire at southern Israel. The Israelis charge that the Grads are smuggled into Gaza through tunnels under the border with Egypt.

Rocket fire has slowed to a relative trickle in recent months. Daily barrages of dozens of rockets from Gaza led to a large-scale Israeli military operation in Gaza in 2009.