On Tuesday, the Islamic State (ISIL) jihadist group posted a video threatening to topple Gaza’s de-facto government, the Palestinian Islamic Hamas movement, and establish its own strict religious rule.
"The two [Egyptians and Israeli] armies may already be coordinating in preparation for such a possibility," the source told the Haaretz newspaper.
Egypt was rocked by a series of coordinated attacks on security targets Wednesday, concentrated in the North Sinai Governorate's city of Sheikh Zuweid, which borders Gaza to the northeast.
The region, with over 100 militants and 70 government troops killed in the latest fighting, has been the hotbed of a growing insurgency against Sisi’s government.
"The Egyptian problem is that a military campaign inside Gaza could lead to breaking down the fences and a mass flight of civilians from Gaza to Sinai," the source added as quoted by the newspaper.
In the wake of the militants' assault, Egyptian government forces launched aerial and ground campaigns against the Sinai-based militant group that pledged allegiance to IS late in 2014, known as Wilayat Sinai
IS’ operations are mostly concentrated in Iraq and Syria, but the radical Sunni group is known to operate terror cells in North Africa, Yemen, Pakistan and Afghanistan.