The US on Tuesday said it was watching the situation unfolding in Egypt as tensions remain high between the interim government and pro ousted President Mohamed Morsi supporters. \"We encourage the interim government to allow people to protest and of course would be very concerned by new reports of violence,\" State department spokeswoman Marie Harf said ta press briefing. Egyptian police fired tear gas to disperse crowds of supporters of Morsi during a march in central Cairo. Local residents then clashed with the pro-Morsi crowds and both sides threw bottles and stones at each other, before security forces moved in. \"I know the situation is unfolding as we speak, but we\'ll be monitoring it closely,\" she told reporters. A missile was reportedly fired Tuesday from Sinai into the southern Israel by militant group Majles Shourat Al-Mujahedeen (Shura council of Mujahideen) in retaliation for a recent Israeli drone strike. \"We do remain concerned about the security situation in the Sinai and continue to raise these concerns with the Egyptian government. That discussion\'s ongoing. We believe that the Egyptian government recognizes these potential threats, we well and we urge them to redouble their efforts to address these threats because securing the Sinai is vital to peace in the region,\" she noted.