TIME 11:50AMAt least 160 people are believed to have been killed after Israel launched a series of air strikes on Hamas security compounds in Gaza City.
The head of Gaza's ambulance service added that 200 people had been wounded after Israel fired around 30 missiles.
Thick black smoke billowed over the city following the attacks, which are thought to have destroyed most of the police headquarters in the city.
Many Hamas security compounds are in residential areas, and the airstrikes took place as children were leaving school.
One police compound was hosting a graduation ceremony for new personnel when it was attacked.
The dead include police chief Tawfiq Jabber, Hamas radio reported.
The attacks followed a decision by Israel's security cabinet to strike back after renewed rocket attacks from Gaza on Israeli border towns.
The Israeli military confirmed they had conducted strikes, saying they targeted "terrorist infrastructure".
A spokesman said: "Our aviation intervened massively against Hamas infrastructure in the Gaza Strip to stop the terrorist attacks of the past several weeks against Israeli civilian installations.
"We had warned the civilian population in the Gaza Strip of our attacks and Hamas, which hides within this population, is solely responsible for this situation.
"Our operations will continue and will be expanded if necessary."
Hamas and other Palestinian factions have ordered their troops to avenge the attack.
A statement from Islamic Jihad said: "All fighters are ordered to respond to the Israeli slaughter."
The attacks follow the end of a six-month truce between the two sides.
Sky correspondent Rachel Younger said: "Hamas blamed Israel for that collapse.
"They said Israel was not letting enough food and medical suppliers through into Gaza."
She added that the role of Egypt would now be vital, as the Egyptians "feel Hamas has been ignoring their efforts to broker a peace deal."
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