Fierce gun battles between Israeli troops and Hamas-led Palestinian fighters were also taking place.
Residents said tanks that have taken control along the borderline with Egypt made several raids towards the west and the centre of the southern city, wounding several residents who had been trapped inside their homes and were taken by surprise.
“I think the occupation forces are trying to reach the beach area of Rafah, the raids and the bombing overnight were tactical, they entered under heavy fire before they retreated,” said one Palestinian man.
Israeli forces have also operated inside the Al-Bureij camp in the central Gaza Strip on the ground, while it kept two other camps and a city nearby under heavy bombardment from planes and tanks, killing and wounding several Palestinians, medics said.
The armed wings of Hamas, the Islamic Jihad, and smaller other groups reported their fighters carried out attacks against invading Israeli forces in several areas in central and southern the enclave.
Qatari and Egyptian mediators, backed by the United States, have stepped up efforts to reach a ceasefire deal, that will halt hostilities and see the release of Israeli hostages and a number of Palestinians jailed by Israel, but sources close to the talks said there were no signs of a breakthrough.
Since a brief week-long truce in November, all attempts to arrange a ceasefire have failed, with Hamas insisting on its demand for a permanent end to the conflict. Israel says it is prepared to discuss only temporary pauses until the group is defeated.
“The occupation and the Americans are to blame for the absence of a deal so far because they don’t want this war on our people to end,” he said.
Israel’s military assault on Gaza has killed more than 36,000 people, according to health officials in the territory, who say thousands more dead are feared buried under the rubble.