Israeli government officials say they are not targeting civilians, only trying to stop rockets by the Palestinian Hamas movement governing Gaza, which are still being fired into southern Israel.
Civilian injuries and casualties in Gaza continue to mount and the death toll now stands at 521, with at least 64 people killed since the ground offensive began, according to Palestinian medical authorities. Some 2,450 have been injured.
Among the latest victims were a mother and her four young children, killed in an Israeli air strike on their home in Gaza.
Four Israeli civilians have been killed and two injured by Palestinian rocket attacks.
The International Red Cross has urged Israel and Hamas to stop targeting civilians.
The military wings of rival Palestinian factions in Gaza have united to fight against the advancing Israeli troops. One Israeli soldier has been killed and 49 wounded.
On the diplomatic front, a Hamas official said a delegation would head to Cairo on Monday, "answering an Egyptian invitation to hold discussions" on a ceasefire.
The talks are set to coincide with the arrival of Nicolas Sarkozy, the French president, in the region, to push for a European-backed ceasefire.
The UN Security Council is also set to meet on Monday to discuss the crisis following an emergency session on Sunday that failed to produce a resolution or even a statement calling for a halt to the fighting.
Israel's ground offensive launched on Saturday followed eight days of intense bombardment of the Gaza Strip, purportedly aimed at ending cross-border rockets being fired by Hamas fighters from the territory into southern Israel.
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