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In its push into Shejaia, Israel suffered its worst losses in the offensive, with the 13 soldiers killed on Sunday marking the army's heaviest one day loss in battle since 2006.

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onto Israeli soil, two groups of Palestinian fighters, dressed as Israeli soldiers, crossed from Gaza via a secret tunnel in the early morning, firing a rocket propelled grenade at a military jeep.

At Al Aqsa hospital in the central Gaza Strip, four people were killed and 70 wounded when an Israeli tank shell slammed into the third floor, which housed operating theatres and an intensive care unit, the Health Ministry said.

Violence also spread to the occupied West Bank where Palestinian medics said Israeli soldiers shot and killed a Palestinian man, 21, while dispersing protesters throwing stones at a military jeep near Jerusalem.

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"This is not the time to talk of a ceasefire," said Gilad Erdan, communications minister and a member of Israeli Prime Minister Benjamin Netanyahu's inner security cabinet.

escalating civilian bloodshed in an Israeli offensive in the Gaza Strip, took a direct role in efforts to secure a ceasefire on Monday, as the Palestinian death toll jumped to more than 500.

The Hamas announcement set off rejoicing in the embattled Gaza Strip.

The Israeli military said it was investigating the incident. Secretary of State John Kerry arrived in Cairo to try to secure an end to hostilities, a day after he was caught by an open microphone saying sarcastically that the Israeli assault was "a hell of a pinpoint operation".

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"The world must understand that Gaza has decided to end the blockade by its blood and its heroism," deputy Hamas leader Ismail Haniyeh said in a televised address.

Speaking in Washington, President Barack Obama said he was increasingly worried by the conflict.

´╗┐Gaza death toll tops 500

Fighters from Hamas, which controls Gaza, and its allies have repeatedly tried to infiltrate Israel over the past week through a vast network of hidden tunnels, looking to attack villages and army encampments that dot the border area.

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"We must complete the mission, and the mission cannot end until the threat of the tunnels is removed," he told reporters.

Israel's losses also mounted. Following the death of 13 soldiers on Sunday, Israel said seven more troops had been killed on Monday, including four whose jeep was fired at by a group of militants who tunnelled Women Adidas Tracksuit

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Netanyahu sent in Israeli ground forces on Thursday to destroy the tunnels and the militants' missile stockpile.

"We have serious concerns about the rising number of Palestinian civilian deaths and the loss of Israeli lives, and that is why it now has to be our focus and the focus of the international community to bring about a ceasefire," he told reporters at the White House.

Nonstop attacks lifted the Palestinian death toll to 536, including almost 100 children, since fighting started on July 8, Gaza health officials said. The Israeli army said it was still investigating the allegation.

Israeli aircraft hit back swiftly, killing 10 of the infiltrators from the Islamist group Hamas, the army said.

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Despite growing calls for a halt to two weeks of fighting, violence raged on. Israel pounded the coastal strip, killing 28 members of a family in one strike, 11 people in an attack on a high rise building and four in the shelling of a hospital, medics said.

The Israeli military, which has accused Hamas militants of firing rockets from the grounds of Gaza hospitals and seeking refuge there, had no immediate comment.

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"We paid a heavy price but we prevented a major attack on our communities," said Major General Sami Turgeman, Israel's military commander in the south.

across the border from Gaza.

Hamas, which killed 13 Israeli soldiers in Gaza on Sunday, said it would not lay down its arms until a series of demands were met including an end to a blockade imposed on the territory by both Israel and Egypt.

Black and white surveillance footage supplied by the army showed one group of five or six men crouching and firing in tall grass. Seconds later they were hit by a large explosion, which sent a cloud of smoke and debris flying into the air.

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The International Committee of the Red Cross issued a statement condemning the shelling of the hospital Adidas Hoodie For Women "in the strongest terms". It said the hospital came under direct fire at least four times and life saving equipment had been severely damaged.

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