It was the bloodiest day since the conflict erupted on Tuesday, with 46 Palestinians killed.
Both sides have dismissed calls for a truce, and Israel continued to build up troops along the Gaza border, raising fears of a possible ground invasion. Late on Saturday, Israel warned Palestinians in northern Gaza to evacuate their homes.
With the Palestinian death toll at 157, and with no Israelis killed, the UN Security Council unanimously urged Israel and Hamas to respect "international humanitarian laws" and stop the loss of life.
The 15-member council urged a return to "calm, and restitution of the November 2012 ceasefire", referring to Gaza's last deadly full-scale conflict.
Israel's aerial campaign - the largest and deadliest since 2012 - saw strikes start early on Saturday, including one that hit a centre for the handicapped, and another that killed two nephews of Gaza's former Hamas premier, Ismail Haniya.
Rockets fired from Gaza targeted Jerusalem and Tel Aviv, with several intercepted over Israel's commercial capital and Jerusalem-bound projectiles hitting two southern West Bank cities. Some of the Iron Dome missiles though fell near civilian populated areas.
Hundreds of rockets from Gaza have so far caused no Israeli deaths, and many have been intercepted by the Iron Dome missile defence system.
An attack on the northern Gaza Strip hit a centre for the handicapped, killing two disabled women and wounding four, the centre's director said.
"They didn't understand what was happening and they were so frightened," Jamila Alaywa said of those inside the care home.
"They fired the rocket and it hit us without any warning."
Later on Saturday night, an Israeli strike hit the Tuffah district in eastern Gaza City, targeting a home and a mosque and killing 16 people, medics said.
Among the wounded was police chief Tayseer al-Batsh, officials said.
Hamas unleashed a barrage of rocket fire after issuing a rare warning that it planned to fire at the Israeli city of Tel Aviv.
Three rockets apparently targeting Jerusalem fell short, hitting Hebron and Bethlehem, the army and Palestinian security sources said, with no reports of casualties.
Of four fired at Tel Aviv, three were intercepted above the city and another hit open ground south of it, the army said.
Well over 500 projectiles have struck Israel during the conflict, and on Saturday evening two rockets fired from Lebanon hit uninhabited areas in northern Israel, the army said.
Israel responded with artillery fire.
Amid international efforts to mediate a truce, Egyptian president Abdel Fatah al-Sisi's government was in touch with both sides, his spokesperson said.
Sisi met Middle East Quartet envoy Tony Blair in Cairo on Saturday to discuss the crisis, and later warned any escalation would cause further loss of "innocent lives".
Washington has said it is willing to "leverage" its relationships in the region to bring about a ceasefire.
The chief diplomats of Britain, France, Germany and the United States are due to discuss how to achieve a truce when they meet in Vienna on Sunday.
Italian Foreign Minister Federica Mogherini plans to visit Israel and the Palestinian territories from July 14-17 and Egypt on July 18, her ministry said.
However, there has been little sign that either side is interested in an immediate end to the hostilities, which appeared to be ramping up on Saturday.
North Gazans told to evacuate
The Israeli army said it was sending messages to residents of northern Gaza "urging them to leave their homes for their own safety."
"It's unsafe to be near Hamas," it said.
On Friday, Cairo said its efforts to mediate a return to a 2012 ceasefire agreement "have met with stubbornness".
And Israeli Prime Minister Netanyahu said Friday that "no international pressure will prevent us from striking, with all force, against the terrorist organisation which calls for our destruction."
Hamas's Haniya sounded a similar tone, saying: "(Israel) is the one that started this aggression and it must stop, because we are (simply) defending ourselves."
The latest conflict unfolded after last month's kidnap and murder of three young Israelis in the occupied West Bank and the brutal revenge killing of a Palestinian teenager by Jewish extremists.
Israel cracked down on Hamas, though the group declined to confirm or deny involvement in the abductions, and Gaza militants hit back with intensified rocket fire.
Israel says preparations are under way for a possible ground incursion, with tanks and artillery massed along the border and some 33,000 reservists mobilised out of 40,000 approved by the cabinet.
Foreign Minister Avigdor Lieberman has said he expected a political decision on a possible ground operation to be taken by Sunday.
COMMENTS (10)
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@Sexton Blake: Hmmm, so in your mind, the attempted slaughter of Israeli women and children by Palestinians firing near 700 military grade surface to surface rockets directly into Israeli cities is "No Reason"!
500 projectile on Israel, and no casualties... seems like Israel is a superman... Come on... man make some sense...
@numbersnumbers: It would be a lot more simple if the Israelis, who are fully supported financially and with military equipment by the US, stopped committing war crimes in Gaza for no reason.
Is there a difference between what the Israelis are donig in Gaza verses what the Pakistani military is carrying out in Waziri land? The Waziris have more space on both sides of the line to seek refuge whereas the Gazans do not have the space to escape!
Rex Minor
Palestinians cannot defend themselves against Israeli might and therefore should stop firing at Israel. We have all seen how Brazil crumbled because of defence lapses. Hamas should not act like a little stubborn child. Build up your defences first and then attack. I hold Hamas responsible for all the deaths.
Much wonder on the deep silence of all Muslim contries on the brutality of Israel and its killing of our Muslims in Ghaza
I think, this time around, the world community (USA,UK, France & Germany) ill just keep quiet. They may, at best, issue cursory calls to both sides to stop the fighting. Russia is busy in Ukraine and China, as usual will stop with statements. Everyone is fed up of this islamic terrorism and now they all want to put an end to it. Though diplomatic statements may be issued to both sides, everyone supports Israel in this current situation. Arab countries are busy fighting themselves and tackling terrorists within their own countries. Iran has its own problems with ISIS in Iraq. Ceasefire may be declared only after Israel gains substantial territory and causes extensive damage to Hamas.
Wow, just how simple could this be for HAMAS/other Palestinian militant groups to save the lives of so many Palestinians by QUIT FIRING ROCKETS INTO ISRAELI CITIES, so that Israel would have no reason to continue firing munitions into Gaza!!!!! Just asking of course!!!