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"We have not encountered a tunnel like this one before," said IDF Spokesperson Brigadier General Ronen Manlis.
"If Hamas is to play any role in a Palestinian government, it must accept these basic requirements."
The two boxes containing professional grade 30 cm commando knives were hidden in a shipment of technicians' tools.
Humanitarian aid is continuing to flow into Gaza daily via the overland crossings from Israel.
In today's show, Walter talks about the important events that are dominating the news in the UK and he also gives his take about the latest developments in the American election circus.
Opening the Erez Crossing for the transfer of goods to Gaza will reduce the pressure at the Kerem Shalom Crossing.
The Gazans said they missed Gush Katif and working with the Jewish Settlers, at a conference of Gazan and Israeli farmers and importers held in Israel.
The PA has lost its last foothold in Gaza and taxes on goods will go straight to Hamas.
Some 400 truckloads of goods are expected to arrive this morning at the crossing.
Egyptian military sources confirmed on Wednesday that missiles were launched from the northern Sinai town of Rafah at the Israeli kibbutz Kerem Shalom, Egypt...