Israel has carried out 180 airstrikes in Gaza City, reportedly killing eight people and targeting the Hamas government headquarters.
Medics have told AFP that the eight people died in central and southern Gaza and 30 were injured in the latest strikes.
An aerial attack on Rafah in southern Gaza killed four people on Saturday, Palestinian medics said, while other strikes elsewhere in the city killed another four people.
The latest deaths raised the overall death toll in Hamas-ruled Gaza Strip to 38, as both sides continued to hurl missiles at each other.
Three Israelis have been killed in the recent violence. Three soldiers were also hurt in rocket fire, the army said on Saturday.
The airstrikes continued into the morning Israel stepped up its air assault in retaliation to an unprecedented rocket strike aimed at the contested holy city of Jerusalem.
Israel's military also called up 75,000 reservists, raising speculation of a ground invasion.
Despite the violence, Tunisia's foreign minister arrived in the coastal enclave early Saturday in a show of Arab solidarity, heading to a hospital to visit the wounded.
The headquarters of the Hamas government, a police compound, a mosque and a vast network of smuggling tunnels were all bombed in overnight airstrikes.
"The cabinet headquarters was targeted with four strikes and the government stresses that it remains committed to its positions and its stand alongside the people," the Hamas government said in a statement.
Israeli aircraft also kept pounding their original targets, the militants' weapons storage facilities and underground rocket launching sites.
Rocket fire by militants into Israel resumed after dawn following a relative lull overnight, but the number was still lower than on the previous three days since the start of the offensive, an Israeli military spokesman said.
Israel has launched more missiles into Gaza, with four flattening Hamas HQ Israeli leaders have threatened to widen Operation Pillar of Defence if the rocket fire from the Gaza Strip does not halt.
Foreign Minister Avigdor Lieberman said options included the possible assassination of Hamas' prime minister Ismail Haniyeh and other top leaders.
"Every time that Hamas fires there will be a more and more severe response," he told Israel's Channel 2 TV.
US President Barack Obama has reiterated his country's support for Israel's right to defend itself against rocket attacks from militants in the Gaza Strip.
In a phone call with Israeli Prime Minister Benjamin Netanyahu, Mr Obama also expressed his regret over the loss of Israeli and Palestinian civilian lives, the White House said.
Mr Netanyahu called the President to update him on the situation in Israel and Gaza and expressed his "deep appreciation to the President and the American people for the United States' investment in the Iron Dome rocket and mortar defence system, which has effectively defeated hundreds of incoming rockets from Gaza and saved countless Israeli lives".
The two leaders also discussed options for de-escalating the situation.
Mr Obama also spoke to Egyptian President Mohammed Morsi and praised his country's efforts to ease tensions in the region.
On Friday morning, Gaza's Hamas prime minister, Ismail Haniyeh, and a slew of other government officials lined up in front of the cabinet building to welcome Egypt's Prime Minister Hisham Kandil, on a brief trip.
A ceasefire had been declared during Mr Kandil's visit - officially to show solidarity with the Palestinian people - but lasted just three hours.
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