Hundreds of Palestinian families, their children crying, fled as Israel intensified airstrikes on Hamas targets, including homes of the movement’s leaders, following failed Egyptian ceasefire efforts.
Before the renewed bombardment, Israel had ordered tens of thousands of residents of border areas to evacuate their homes.
The Palestinian death toll in nine days of fighting rose to 204, with some 1,450 wounded, Palestinian health officials said.
On the Israeli side, one man was killed and several people were wounded since the fighting erupted on July 8.
The renewed bombings came a day after Israel initially accepted an Egyptian truce proposal that called for a halt of hostilities.
That was to be followed by talks on the terms of a longer-term ceasefire, including easing Gaza’s seven-year-old border blockade by Israel and Egypt.
Hamas rejected the plan and instead launched more rockets at Israel.
The militant group views a significant easing of the blockade as key to its survival but does not believe Egypt’s current rulers – who deposed a Hamas-friendly government in Cairo last year – can be fair brokers.
As Cairo’s effort collapsed, Israeli prime minister Benjamin Netanyahu warned that Hamas will pay a high price for rejecting the truce offer.
The website of the Gaza Interior Ministry said Israel warplanes carried out dozens of air strikes before dawn today, targeting 30 houses, including those of senior Hamas leaders Mahmoud Zahar, Jamila Shanti, Fathi Hamas and Ismail Ashkar.
Zahar was a key figure in Hamas’ violent takeover of Gaza in 2007 while the other three were members of the Palestinian parliament elected in 2006.
Many Hamas leaders have gone into hiding since the beginning of the Israeli offensive.
Alongside the air strikes, Israel also told tens of thousands of residents of the northern town of Beit Lahiya and the Zeitoun and Shijaiyah neighborhoods of Gaza City, all near the border with Israel, to evacuate their homes by 8am.
The warnings were delivered in automated phone calls, text messages and leaflets dropped from planes.
The Israeli military said in its message that large numbers of rockets were launched from these areas and that Israel plans to bomb these locations.
“Whoever disregards these instructions and fails to evacuate immediately, endangers their own lives, as well as those of their families,” the message said.
Hundreds of residents of Zeitoun and Shijaiyah were seen walking in the streets today, carrying small bags with belongings.
Older children carried smaller ones, in their arms or on their backs. Some of the women and children cried, looking terrified.
The Wafa Rehabilitation Centre in Shijaiyah, which cares for 15 disabled and elderly patients, received several calls demanding the patients evacuate, said its director, Basman Ashi.
He said an Israel shell hit near the building, causing damage to the second floor, but no injuries.
Mr Ashi said he will not evacuate because his elderly patients have nowhere to go.
Four foreign volunteers – from England, the US, France and Sweden – have set up camp at the rehabilitation centre to deter the military from targeting it.
English volunteer Rina Andolini, 32, said the patients range in age from 12 to over 70 and none can walk or move without assistance. She said there are also 17 Palestinian staff members.
Ms Andolini said the patients are living in a constant state of fear, intensified by the Israeli tank shelling from across the border.
When asked about the situation at the rehabilitation centre, the office of the Israeli military spokesman said its residents “have been asked repeatedly to leave.”
“There is a rocket launching site in the area,” the military said, adding that Gaza militants use the centre to hide “behind civilians”.