Israel has kept up its air strikes on Gaza, claiming it was responding to militant rocket fire.
With no end in sight to fighting in its seventh week, Israel appears to be moving towards bolder hits on Hamas targets.
Prime Minister Benjamin Netanyahu has warned Palestinian civilians to leave immediately any site where Hamas is operating.
The Israeli military released a video it said showed an air strike on a Palestinian rocket launcher.
Hamas has admitted continuing its mortar strikes and rocket fire at southern Israel.
A house in the Israeli city of Ashkelon was struck overnight. Israel claims more than 70 rockets were launched on Sunday. Most. it said, were intercepted by its Iron Dome defence system.
Hamas says it will not stop fighting until the Israeli-Egyptian blockade on Gaza is lifted. However both countries view Gaza as a security threat and want guarantees that weapons will not enter the enclave.