Despite appeals for restraint from the UN and the United States, an Israeli airstrike destroyed an apartment block in Gaza City after residents were warned to leave.
Hamas and Islamic Jihad in Gaza responded by firing a large number of rockets towards the Israeli city of Tel Aviv and its suburbs. A woman was killed in the attacks.
The latest round of violence began around the Al-Aqsa mosque in east Jerusalem which is sacred for both Muslims and Jews.
During Ramadan, there have been clashes there between Palestinian protesters and Israeli security forces who imposed tight restrictions on the site.
Tensions in East Jerusalem, which has been occupied by Israel since 1967, are also running high over plans to evict dozens of Palestinians from a neighbourhood claimed by Jewish settlers.
Sophie Raworth presents BBC News at Ten reporting by middle east correspondent Tom Bateman.
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