Israeli forces are searching for a soldier believed captured, as a Gaza truce with Hamas collapsed just hours after it began.
The Israeli military said the soldier went missing during an attack on forces trying to destroy a tunnel from Gaza built by militants into Israel.
Hostilities had continued right up until the ceasefire began. Photo credit: Reuters.
Israel and Hamas accused each other of breaching the 72-hour ceasefire.
Palestinian sources said at least 35 people were killed by Israeli shelling in the southern town of Rafah.
In 2006 Palestinian militants captured an Israeli soldier, Gilad Shalit, who was held for five years until November 2011. He was released in exchange for 1,000 Palestinian prisoners.
Hamas has neither confirmed nor denied the latest capture.
Some 1,460 Palestinians, mostly civilians, have died in the latest conflict and 63 Israelis, mostly soldiers.
The ceasefire had been brokered by the US and UN to give civilians a reprieve from the violence, and had been seen as an unforeseen breakthrough after days of diplomatic deadlock.
Also on Friday, Palestinian and Israeli delegations arrived in Cairo, Egypt, with the hope of negotiating a longer-term cessation of hostilities, but Egyptian officials said the talks had now been postponed.
Source: BBC News