Israeli shelling killed at least 20 Palestinians in a Gaza neighbourhood on Sunday, and thousands of residents fled for their lives, local health officials and witnesses said.
Gaza’s Shifa hospital was filled with dozens of wounded from the attack on the eastern Shejaia neighbourhood, about three kilometres (two miles) away.
Israel has widened its ground offensive, sending more troops into Gaza.
The Israeli military said two Israel Defence Forces (IDF)soldiers were killed and four others wounded by Hamas militants who reached Israel, reportedly through a concealed tunnel.
One Hamas gunman was killed. The rest of the group escaped back into Gaza.
Sunday is day 13 of ‘Operation Protective Edge’ and the fourth day of Israel’s ground attack in Gaza.
The IDF mission to destroy tunnels is to prevent the movement of Palestinian militants and their ability to conduct cross-border raids.
Palestinian doctors said a son, daughter-in-law and granddaughter of senior Hamas leader Khalil al-Haya were killed when their house was hit by a tank shell.
Since the start of Israel-Hamas fighting almost two weeks ago, 348 Palestinians were killed and 2,700 wounded in Israeli air and artillery strikes, according to Palestinian health officials.