Israeli forces demolished houses in eastern areas of Gaza City overnight, killing at least 11 people in aerial and tank fire, Hamas health authorities said, as the Palestinian Islamist group told mediators it was ready to resume ceasefire talks.
Israel's planned seizure of Gaza City - which it took in the early days of the war before withdrawing - is probably weeks away, officials say.
In an effort to avert the planned military escalation, Egypt has been trying to revive a push for a ceasefire in Gaza, hosting a Hamas delegation led by the group's chief negotiator Khalil Al-Hayya.
He told mediators in Cairo on Wednesday that Hamas was ready to resume ceasefire talks to achieve a temporary truce, and was open to discussing a comprehensive agreement that would end the war, Egyptian and Palestinian sources said.
The latest round of indirect talks in Qatar ended in deadlock in late July with Israel and Hamas trading blame over the lack of progress on a U.S. proposal for a 60-day truce and hostage release deal.
Gaps between the sides appear to remain wide on key issues, including the extent of any Israeli military withdrawal and demands for Hamas to disarm.