World powers have urged restraint after Iran late Saturday launched more than 300 drones and missiles at Israel, though the Israeli military has said the vast majority were intercepted.
US President Joe Biden warned Prime Minister Benjamin Netanyahu they will not take part in a counter-offensive against Iran, an option Netanyahu's war cabinet favours after a mass drone and missile attack on Israeli territory, reports Reuters citing officials.
Iran's first direct assault on Israel, in retaliation for a deadly strike in Damascus earlier this month, followed months of violence across the region involving Iranian proxies who say they act in support of Palestinians in the war-battered Gaza Strip.
"Even while under attack from Iran, we have not lost sight, not for one moment, of our critical mission in Gaza to rescue our hostages from the hands of Iran's proxy Hamas," Israeli military spokesman Rear Admiral Daniel Hagari said late Sunday.
As mediators eye a deal to halt the fighting, triggered by Hamas's 7 October attack, fears grew over Israeli plans to send troops into Rafah, a far-southern city where the majority of Gaza's 2.4 million people have taken refuge.
"Hamas is still holding our hostages in Gaza," Hagari said of the roughly 130 people, including 34 presumed dead, who Israel says remain in the hands of Palestinian militants since the Hamas attack.
"We also have hostages in Rafah, and we will do everything we can to bring them back home," the military spokesman told a briefing.
The army said it was "calling up approximately two reserve brigades for operational activities on the Gazan front", about a week after withdrawing most ground troops from the territory.
The Hamas government media office said Israeli aircraft launched "dozens" of strikes overnight on central Gaza.
Rumours of a reopened Israeli checkpoint on the coastal road from the besieged territory's south to Gaza City send thousands of Palestinians heading north on Sunday, despite Israel denying it was open.
