Israeli jets have pounded militant targets in Gaza and rocket barrages into southern Israel persisted, raising fears of an escalation after a wave of Israeli air strikes on the coastal enclave.

Gaza’s health ministry said 24 people had been killed so far in the coastal strip, including six children.

The fighting that began on Friday with Israel’s dramatic targeted killing of a senior commander of the Palestinian Islamic Jihad group continued throughout the night, drawing the sides closer to an all-out war.

But the territory’s Hamas rulers appeared to stay on the sidelines of the conflict, keeping its intensity somewhat contained, for now.

Israel and Hamas have fought four wars and several smaller battles over the last 15 years at a staggering cost to the territory’s two million Palestinian residents.

The Israeli military said an errant rocket fired by Palestinian militants killed civilians late Saturday, including children, in the town of Jabaliya, in northern Gaza.

The military said it investigated the incident and concluded “without a doubt” that it was caused by a misfire on the part of Islamic Jihad.

A Palestinian medical worker, who was not authorised to brief the media, said the blast killed at least six people, including three children.

Shortly before noon, Israeli warplanes stepped up air strikes in Gaza.

Smoke rises after Israeli air strikes on Gaza City
Smoke rises after Israeli air strikes on Gaza City (Fatima Shbair/AP)

After warning residents in phone calls, fighter jets dropped two bombs on the house of an Islamic Jihad member, flattening the west Gaza City two-storey structure and badly damaging surrounding homes.

Women and children rushed out of the area.

“Warned us? They warned us with rockets and we fled without taking anything,” said Huda Shamalakh, who lived next door.

She said 15 people lived in the targeted home.

Among the 24 Palestinians killed were six children and two women, as well as the senior Islamic Jihad commander.

The Gaza Health Ministry said more than 200 people have been wounded. It does not differentiate between civilians and fighters. The Israeli military said Friday that early estimates were that around 15 fighters were killed.

The latest round of Israel-Gaza violence was sparked by the arrest this week of a senior Islamic Jihad leader in the West Bank, part of a month-long Israeli military operation in the territory.

Smoke pours out of a tall building after an Israeli air strike in Gaza City
Smoke pours out of a tall building after an Israeli air strike in Gaza City (AP)

Citing a security threat, Israel then sealed roads around the Gaza Strip and on Friday killed the militant leader in a targeted strike.

A blast was heard in Gaza City, where smoke poured from the seventh floor of a tall building.

Video released by Israel’s military showed the strikes blowing up three guard towers with suspected militants in them.

In a nationally televised speech on Friday, Israeli Prime Minister Yair Lapid said his country launched the attacks based on “concrete threats”.

“This government has a zero-tolerance policy for any attempted attacks – of any kind – from Gaza towards Israeli territory,” Mr Lapid said.

“Israel will not sit idly by when there are those who are trying to harm its civilians.”

“Israel isn’t interested in a broader conflict in Gaza but will not shy away from one either,” he added.

The damaged apartment of Taiseer al-Jabari, the Islamic Jihad commander for northern Gaza, following an Israeli air strike in Gaza City
The damaged apartment of Taiseer al-Jabari, the Islamic Jihad commander for northern Gaza, following an Israeli air strike in Gaza City (Adel Hana/AP)

The violence poses an early test for Mr Lapid, who assumed the role of caretaker prime minister ahead of elections in November, when he hopes to keep the position.

Mr Lapid, a centrist former TV host and author, has experience in diplomacy having served as foreign minister in the outgoing government, but has thin security credentials.

A conflict with Gaza could burnish his standing and give him a boost as he faces off against former prime minister Benjamin Netanyahu, a security hawk who led the country during three of its four wars with Hamas.

Hamas also faces a dilemma in deciding whether to join a new battle barely a year after the last war caused widespread devastation.

There has been almost no reconstruction since then, and the isolated coastal territory is mired in poverty, with unemployment hovering around 50%.

Rockets are seen in the sky fired by Palestinian militants towards Israel in Gaza
Rockets are seen in the sky fired by Palestinian militants in Gaza towards Israel (Adel Hana/AP)

Islamic Jihad said Taiseer al-Jabari, its commander for northern Gaza, was among the dead.

He had succeeded another militant killed in an air strike in 2019.

An Israeli military spokesman said the strikes were in response to an “imminent threat” from two militant squads armed with anti-tank missiles.

The spokesman said al-Jabari was deliberately targeted and had been responsible for “multiple attacks” on Israel.

Hundreds marched in a funeral procession for him and others who were killed, with many mourners waving Palestinian and Islamic Jihad flags and calling for revenge.

Israeli media showed the skies above southern and central Israel lighting up with rockets and interceptors from Israel’s Iron Dome missile defence system.

It was not immediately clear how many rockets were launched, and there was no immediate word on any casualties on the Israeli side.

Smoke rises following Israeli air strikes on a building in Gaza City
Smoke rises following Israeli air strikes on a building in Gaza City (Hatem Moussa/AP)

Overnight, Israel struck rocket launchers, rocket building sites and Islamic Jihad positions.

The UN special envoy to the region Tor Wennesland said: “The launching of rockets must cease immediately, and I call on all sides to avoid further escalation.”

Following the initial Israeli strikes, a few hundred people gathered outside the morgue at Gaza City’s main Shifa hospital.

Some went in to identify loved ones and emerged later in tears.

“May God take revenge against spies,” shouted one, referring to Palestinian informants who co-operate with Israel.

Defence minister Benny Gantz approved an order to call up 25,000 reserve soldiers if needed while the military announced a “special situation” on the home front, with schools closed and limits placed on activities in communities within 80 kilometres (50 miles) of the border.

Israel closed roads around Gaza earlier this week and sent reinforcements to the border as it braced for a revenge attack after Monday’s arrest of Bassam al-Saadi, an Islamic Jihad leader, in a military raid in the occupied West Bank.

A teenage member of the group was killed in a gunbattle between Israeli troops and Palestinian militants.

Rockets seen in the sky fired by Palestinian militants towards Israel, over Gaza City
Rockets fired by Palestinian militants are seen over Gaza City (Adel Hana/AP)

Hamas seized power in the coastal strip from rival Palestinian forces in 2007.

Its most recent war with Israel was in May 2021.

Tensions soared again earlier this year following a wave of attacks inside Israel, near-daily military operations in the West Bank and tensions at a flashpoint Jerusalem holy site.

Israel withdrew troops and settlers from Gaza in 2005.

Islamic Jihad leader Ziad al-Nakhalah, speaking to the Al-Mayadeen TV network from Iran, said “fighters of the Palestinian resistance have to stand together to confront this aggression”.

He said there would be “no red lines” and blamed the violence on Israel.

Hamas spokesman Fawzi Barhoum said “the Israeli enemy, which started the escalation against Gaza and committed a new crime, must pay the price and bear full responsibility for it”.

Israel’s Iron Dome air defence system launches missiles to intercept rockets fired from the Gaza Strip towards Israel, over Gaza City
Israel’s Iron Dome air defence system launches missiles to intercept rockets fired from the Gaza Strip towards Israel (Adel Hana/AP)

Iranian-backed Islamic Jihad is smaller than Hamas but largely shares its ideology.

Both groups oppose Israel’s existence and have carried out scores of deadly attacks over the years, including the firing of rockets into Israel.

It is unclear how much control Hamas has over Islamic Jihad, and Israel holds Hamas responsible for all attacks emanating from Gaza.

Israel and Egypt have maintained a tight blockade over the territory since the Hamas takeover.

Israel says the closure is needed to prevent Hamas from building up its military capabilities.

Critics say the policy amounts to collective punishment.