Israeli forces attacked Khan Younis in the southern Gaza Strip with tank fire and air strikes on Tuesday, residents said, and Israeli ground troops and Hamas also battled in other parts of the shattered Palestinian enclave.
Residents said Israeli tanks had shelled parts of the Al-Bureij refugee camp in the central area.
The Gaza health ministry said 207 people had been killed in the past 24 hours, bringing the total recorded Palestinian death toll to more than 22,000 in nearly three months of warfare in the Hamas-ruled enclave.
Israeli Defence Minister Yoav Gallant said the operations in the south around Khan Younis were focused on areas above the tunnel network where Hamas leaders were believed to be hiding.
"We are reaching them all ways. There already is engagement and there are hostages there too sadly," he told troops in Gaza in footage shown on Israeli television.
"This will continue as high intensity efforts in the heart of Khan Younis," he said.
The latest fighting took place after Israel announced plans to pull back some troops, signalling a new phase in the war against Hamas amid global concern over the plight of Gaza residents.
Israeli bombardments have reduced much of the territory to rubble and engulfed its 2.3 million residents in a humanitarian disaster in which many thousands have been left destitute and threatened by famine due to a lack of food supplies. Israeli officials say the offensive has many months to run.
In a tent camp for displaced Palestinians in Gaza's southern city of Rafah, Shadi Maarouf, his wife Safeya and their six children gathered around a campfire, braving the cold and dark.
After a perilous journey from their home in Beit Lahia in the north, constantly fleeing Israeli air strikes, they ended up in a tent in Rafah with no basic amenities.
"We have nothing. We are living in cold, as you can see. We use straps of clothes for the fire, there is no firewood," Maarouf told Reuters.
"There is no water even to clean up or wash ourselves. If I want to pray, I perform ablution using the sand. There is no drinking water. There is no tent to protect us."
In its daily briefing, the Israeli military said in the past day its forces had targeted Hamas in Gaza City in the north of the enclave and in unspecified locations along the Mediterranean coast.
Gaza residents said Israeli warplanes and tanks stepped up bombardments of the eastern and northern areas of Khan Younis, where tens of thousands of displaced Palestinians have sought refuge after being forced from their homes elsewhere in the densely-populated territory.
The Palestinian Red Crescent said Israeli forces had hit its headquarters in Khan Younis, resulting in several deaths and wounded among displaced people sheltering there.
At a house in the centre of Khan Younis, medical teams retrieved the bodies of two women killed in an Israeli air strike on Tuesday morning, health officials said.
Another Israeli strike on Al-Nusseirat refugee camp in northern Gaza killed or wounded several people in a house, medics said.
Hamas and its Islamic Jihad allies said in separate statements they had fired mortar bombs and anti-tank rockets against Israeli forces in Khan Younis and were stopping them advancing to the western area. Israel made no comment on these reports.
Hamas showed its continued ability to target Israel after more than 12 weeks of the war, firing rockets at Tel Aviv.
Gaza health authorities say Israel's offensive has so far killed at least 22,185 Palestinians, in the deadliest chapter of the decades-long Israel-Palestinian conflict.
An Israeli official said on Monday the military would reduce its forces inside Gaza this month and shift to a months-long phase of more localised "mopping up" operations.
The troop reduction would allow some reservists to return to civilian life, shore up Israel's war-battered economy, and free up units in case of a wider conflict with the Hezbollah on the border with Lebanon, the official said.
Washington, Israel's main backer, has been urging Israel to reduce the intensity of its military operation in view of the high civilian cost.
A prime concern for Israel is the return or rescue of hostages held by Hamas. Hamas seized 240 hostages on Oct. 7 and Israel believes 129 are still held after some were released during a brief truce and others killed during air strikes and rescue or escape attempts.
Region
Gaza death toll passes 22,000 with no let-up in fighting
Family describes how it is struggling to survive in a tent camp near Rafah with no water, electricity, food or blankets
A Palestinian child touches a fence, as displaced Palestinians, who fled their homes due to Israeli strikes, shelter at a tent camp in Rafah, southern Gaza Strip on Tuesday. REUTERS
Palestinian children walk in puddles on a muddy path at a makeshift camp housing displaced Palestinians, in Rafah in the southern Gaza Strip on Tuesday. AFP
Displaced Palestinians, who fled their homes due to Israeli strikes, shelter at a tent camp in Rafah, southern Gaza Strip on Tuesday. REUTERS
Displaced Palestinians, who fled their home due to Israeli strikes, shelter at a tent camp in Rafah, southern Gaza Strip on Tuesday. REUTERS
A displaced Palestinian child, who fled their home due to Israeli strikes, shelters at a tent camp in Rafah, southern Gaza Strip on Tuesday. REUTERS
Displaced Palestinians, who fled their home due to Israeli strikes, shelter at a tent camp in Rafah, southern Gaza Strip on Tuesday. REUTERS
Displaced Palestinians, who fled their homes due to Israeli strikes, shelter at a tent camp in Rafah, southern Gaza Strip on Tuesday. REUTERS
A Palestinian child looks through a fence, as displaced Palestinians, who fled their homes due to Israeli strikes, shelter at a tent camp in Rafah, southern Gaza Strip on Tuesday. REUTERS
Palestinian man Hamada Abu Sleyma, whose wife, all his 6 children and two grandchildren were killed in an Israeli strike that destroyed his house, walks on rubble, in Rafah in the southern Gaza Strip on Monday. REUTERS
Palestinians who fled their houses due to Israeli strikes shelter in a tent in Rafah, in the southern Gaza Strip on Tuesday. REUTERS
Palestinian women make break in ovens at a makeshift camp housing displaced Palestinians, in Rafah in the southern Gaza Strip on Tuesday. AFP
Palestinian people walk and ride past tents at a makeshift camp housing displaced Palestinians, in Rafah in the southern Gaza Strip on Tuesday. AFP
Displaced Palestinians cook a meal inside their shelter at the zoo in Rafah in the southern Gaza Strip on Tuesday. AFP
A lion is seen in their cage at the zoo in Rafah in the southern Gaza Strip on Tuesday. AFP
Displaced Palestinians are pictured at the zoo in Rafah in the southern Gaza Strip on Tuesday. AFP
Smoke billows over Khan Yunis from Rafah in the southern Gaza strip during Israeli bombardment on Tuesday. AFP