Airstrikes and rockets continue to be fired as both Israel and Hamas reject the U.N. call for an immediate cease fire.
A Hamas spokesman said the Islamic militant group is not interested in the cease-fire because it was not consulted and the resolution did not meet its minimum demands.
Israel's government says any cease-fire must guarantee an end to rocket fire and arms smuggling into Gaza. During a six-month cease-fire that ended with the current operation, Hamas is thought to have used tunnels under the Egypt-Gaza border to smuggle in the medium-range rockets it is now using to hit deeper than ever inside Israel.
With both sides failing to agree, the hope of a cease fire agreement is becoming increasingly distant.
The death toll in the two week old conflict has risen to 776 Palestinians of which more than half are civilians according to reports from heath officials. Thirteen Israelis have also been killed.
One Israeli airstrike killed two Hamas militants and another unidentified man, while another flattened a five-story building in northern Gaza, killing at least seven people, including an infant, Hamas officials said. Israeli aircraft struck more than 30 targets before dawn, and there were constant explosions after first light.
Thousands of angry protesters took to the streets on Friday in the West Bank to express their anger at the Israeli offensive. This has been the biggest number so far.