Egypt and Israel are engaged in a tense standoff in the Suez Canal as tensions escalate over Egypt’s refusal to allow Israeli fishermen access to the sea.
Israel began its drills on Saturday and Egypt’s military said the drills would be extended to include a naval exercise in the Mediterranean Sea.
The Suez and Red Sea are the main arteries of the Mediterranean for the trade between the countries.
Egypt is Egypt’s closest ally in the region, which has been locked in a decades-long military and political conflict.
Israeli Prime Minister Benjamin Netanyahu on Sunday called on Egypt to “stop its hostile acts against Israel” in response to Egypt’s announcement on Saturday.
Israel and Egypt fought a brief war in 1967, and have maintained a military-to-military confrontation ever since.
The border between Egypt and the occupied West Bank and Gaza Strip remains tense, with the Egyptian military launching hundreds of rockets at Israeli targets in recent weeks.
Israel said on Sunday that it had fired some 500 shells towards Egyptian territory during the past 24 hours, including from its coastal enclave.
Israel has launched at least 11 air raids on Gaza in the past few weeks.
On Saturday, the Israeli military said it had launched 59 air raids in Gaza, including a strike on a mosque that killed nine worshippers.
Israel also fired a warning shot at a Gaza-bound airliner, causing it to land in international airspace.
The Israeli military says it has fired over 600 missiles at Gaza since it launched its offensive last month.
The majority have been aimed at targets in the Gaza Strip, including the coastal enclave, where most of the rockets were fired from.
Israel has denied targeting civilians.