Israeli Prime Minister Benjamin Netanyahu said he has ordered the military to take control of 70% of Gaza.
A fragile peace deal agreed last year set out a 'yellow line' allocating half of the strip to Israel's direct control, but estimates are that Israel currently runs 64% of the Palestinian territory.
The move follows strikes which Israel says targeted Hamas's military chief and other leaders.
Health officials in Gaza say at least 900 have been killed since the ceasefire was agreed.
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