Palestinian officials say that 395 people in Gaza have been killed since Israel launched its operation
Gaza has come under the most intense shelling since the launch of Israel's offensive, with more than 50 people reported killed in one district.
The deaths occurred at Shejaiya, east of Gaza City, Palestinian medics said. Eyewitnesses spoke of bodies lying in the streets.
Israel earlier said it had expanded its operation - launched 13 days ago - against Hamas militants.
A few hours later, it agreed to a two-hour humanitarian truce in Shejaiya.
The ceasefire would last from 13:30 to 15:30 local time (10:30-12:30 GMT), an Israeli military spokesman said.


But a BBC team on the ground reported an exchange of fire less than an hour after the truce began.
The death toll continued to rise at the weekend, with the number of Palestinians killed now more than 400 since the operation began, according to Palestinian health officials.
The majority of those killed are civilians, the UN says.
In other developments:

Hamas claims it carried out a major attack on Israeli forces in Gaza, causing multiple casualties. There is no comment from the Israeli military on this
There has been almost constant shelling by Israel in the past few hours, with tanks and troops reported on the move
Hamas is continuing to fire rockets into Israel, with one landing in the city of Ashkelon
UN Secretary General Ban Ki-moon is due to arrive in Qatar later to meet Palestinian President Mahmoud Abbas
The Israeli military says the ground offensive has been expanded to destroy a Hamas tunnel network
Scenes of panic More than 50 people died in the north-eastern district of Shejaiya in a heavy bombardment which began overnight, the Palestinian medics said.
Ambulances were unable to reach much of the area because of shelling in the area, about three kilometres (1.2 miles) away from Gaza City.
The BBC's Yolande Knell, in Gaza City, says there have been scenes of panic with thousands of residents fleeing the area.
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At the scene: Paul Adams in Shejaiya When we arrived at the edge of the neighbourhood, Palestinians were still fleeing in their hundreds: carrying nothing but their children, some pausing to vent their anger in front of cameras.
They spoke of bodies lying in the street and the wreckage of buildings, including a mosque.
After a night of ferocious bombardment, they seem traumatised and stunned. For three days, Israel had warned them to leave their homes, but Shejaiya is home to 80,000 people. Most stayed put, not expecting the ferocity of last night's bombardment.
One man, his eyes glassy, said his father had been killed. He didn't know where other family members were or even if they were alive.
An elderly woman, in traditional Palestinian costume, raised her arms to the sky and asked how God could let this happen.
A handicapped girl winced as she was lifted into the back of a pickup truck.
And all the time, more and more civilians emerged from Shejaiya. line Five Israeli soldiers and two Israeli civilians have died since Prime Minister Benjamin Netanyahu launched the military offensive on 8 July.
The Israel Defense Forces (IDF) sent ground troops into Gaza on Thursday after days of heavy air and naval barrages failed to stop rocket fire from Gaza.
'Restoring security' Israel says the operation is necessary to target Hamas tunnel networks, which it says it could not do from the air alone.
Lt Col Peter Lerner, an IDF spokesman, said the offensive was being expanded "to restore security and stability to Israel's residents and citizens".

source: http://www.ralphcrown.com/2014/07/gaza-shelling-by-israel-most-intense.html