One of the security sources said Egypt rejected the idea of safe corridors for civilians to protect "the right of Palestinians to hold on to their cause and their land".
The smuggling operation involved transferring the goods from Gaza to the West Bank, followed by swapping trucks that have Israeli license plates for partial entry into Israel.
Aside from a Koran and a firearm, the terrorist was found to be carrying a knife and six magazines.
Tens of thousands of Israel-issued work permits do nothing to put a dent in an unemployment rate of 70% among Gazan youths.
Jordan will host a meeting of Israeli and Palestinian representatives which aims to stop escalation and reengage the two sides.