Palestinian officials say 884 Palestinians have died in the Israeli assault, more than a third of them women and children. Thirteen Israelis have died, three of them civilians hit by rockets in Israel.
As Israeli troops and tanks withdrew from their Gaza City neighborhoods, hundreds of panicked residents fled, clutching small children and hastily packed bags after a sleepless night.
"I'm sure they'll be back," Mazin Ashi, 31, said outside his apartment building in Gaza City's Tal Al Hawa district.
He was tossing blankets and other belongings into the truck of a taxi as his wife, Safaa, climbed into the back seat with their three small children. They were headed for her sister's home near the city's main hospital, an area presumed to be safer.
"Hurry up," Safaa called to him. "We need to get out of here while it's still quiet."
Israel had dropped thousands of leaflets over the city Saturday warning of a wider offensive.
New leaflets fell from the sky yesterday urging residents to report the whereabouts of Hamas fighters and providing a phone number to call.
"Confidentiality guaranteed," the message in Arabic promised.
