Palestinian Prime Minister Ismail Haniyeh and President Mahmoud Abbas have surveyed the damage after Haniyeh’s office was hit by an Israeli missile.
The attack drives home the Israeli message that Hamas leaders will be targeted unless the soldier abducted a week ago is released.
Haniyeh described the attack as the “policy of the jungle” and said that nothing would affect his administration’s “spirit”.
Deputy Israeli Prime Minister Shimon Peres suggested Hamas was the main obstacle to progress.
“President Mubarak of Egypt tried to mediate to bring an end to it, but Hamas rejected all his proposals. Abu Mazen tried his hand…his propositions were ignored and rejected,” he said.
Israeli Prime Minister Ehud Olmert has told the army to use all its force to rescue Corporal Gilad Shalit, who is being held by Palestinian militants.
It is also reported that the Hamas politicians detained in the West Bank are to be tried for participation in terrorist acts.
The Israelis continued a major offensive into the Gaza Strip, with one Hamas member killed in a rocket attack on an office and a Hamas school hit in another strike.
There are fears of a humanitarian crisis in Gaza after Israel hit power plants and road bridges.
Hamas has threatened to target similar infrastructure in Israel if the army does not withdraw.