Emotions run high in the southern Gazan town of Khan Younis as residents bury two men targeted and killed on Thursday morning in an Israeli air strike.
In Gaza City, the air strikes, mainly targeting rocket launchers have increased the number of casualties - including civilian.
The wounded, including several children, were rushed to hospital for treatment.
Earlier on Thursday, Israel dropped pamphlets in the Gaza Strip warning residents to stay away from Hamas offices or risk their lives.
Many silently read the pamphlets before tearing them up.
Shops were closed in Gaza City as residents - worried about a protracted conflict - queued at bakeries to stock up on bread.
Isreal launched a major offensive against Palestinian militants in Gaza on Wednesday killing the military commander of Hamas in an air strike and threatening an invasion.
Funerals and panic buying as Israel continues lethal assault on Gaza (1:06)
Nov. 15 - Gazans bury their dead as fears of a protracted conflict spark panic buying in shops. Sunita Rappai reports. ( Transcript )