Rescue workers have discovered at least 60 bodies beneath the debris of a Gaza City neighborhood, Hamas-run after Israel's military announced an end to its assault there.
The increase in fighting, bombing, and displacement in Shujaiya's eastern region coincided with discussions in mediator Qatar to reach a truce and release hostages.
US President Joe Biden told reporters that his government was "making progress" towards a cease-fire agreement and called for an end to the Israel-Hamas conflict.
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His comments came after Prime Minister Benjamin Netanyahu requested that Israel maintain control of important Gaza area along the Egyptian border, which contradicts Hamas's insistence that Israel must withdraw from all Gaza territory following a truce.
Witnesses said that tanks and personnel had moved on to other city sections.
An AFP journalist reported air strikes on the Sabra district as militants clashed heavily with Israeli soldiers near Tel al-Hawa.
Hamas reported 45 air strikes in Gaza City and Rafah, where Netanyahu had stated that the war's most severe phase was approaching an end.
Netanyahu's office acknowledged that its negotiation delegation, led by Mossad intelligence chief David Barnea, returned to Israel after meeting with mediators in Doha on Thursday.
Speaking after the team returned, Netanyahu stated that Israel needs control of the Palestinian side of Gaza's border with Egypt to prevent weapons from reaching Hamas.