At least 15 people have been killed and more than 150 wounded in an Israeli airstrike on a market, shortly after Israel said it was observing a humanitarian ceasefire.
Medical officials said the strike hit a busy market in the Shejaiza neighbourhood between Gaza City and the Israeli border.
Israel had said it would halt assaults in areas of the coastal strip where troops were not "currently operating."
Hamas responded by saying the lull had "no value", and continued firing rockets into Israel.
Damage to the school in Jebalya that doubles up as a shelter for refugees Israel agreed to hold fire in Gaza after a night of heavy shelling left at least 43 people dead, including many at a UN school.
The school in Jebalya refugee camp, where aid workers say they are at "breaking point" helping some of the 200,000 people who have been displaced by the war, was hit around dawn.
At least 19 people, including a young child, were killed, many of them as they slept.
Adbel Karim al Masamha, who came to Jebalya with his family to seek refuge, said: "People were martyred before our eyes. They were dismembered."
Jebalya is one of eight UN refugee camps in Gaza Another refugee, Haleema Ghabin, added: "No place is safe, neither homes nor schools. We are defenceless."
Jebalya was the second UN-run school to be hit in the past week, with a complex in Beit Hanoun struck last Thursday, killing at least 15 people.
An Israeli defence spokesman said militants near the school fired mortars at soldiers before the attack.
The UN Relief and Works Agency (UNRWA) said it told Israel "17 times" the building was being used by refugees, although it also confirmed other schools had been used to store weapons.
Sky's Sherine Tadros saw the aftermath of a rocket attack in Gaza City On the 23rd day of the conflict, Israeli TV said progress was being made to achieve a peace deal, with a Palestinian delegation expected to arrive in Egypt for discussions.
Earlier, thick, black smoke could be seen rising from blazing fuel tanks at Gaza's only power station, which was knocked out on the bloodiest day of the conflict so far.
At least 128 Palestinians were killed as Israel sought to destroy what it called Hamas "terror sites" with heavy fire from the air, land and sea.
It says its ongoing operation is meant to stop Hamas rocket fire and demolish a sophisticated network of tunnels.
Hundreds of homes have been razed to the ground in Gaza More than 2,600 missiles have been fired from Gaza in the past three weeks, the Israeli army said.
Meanwhile, the leader of Hamas' military wing, Mohammed Deif, issued a rare statement, saying there will be no end to the fighting until the blockade of Gaza is lifted.
According to UNRWA, about 10% of Palestinians - more than 200,000 people - have been displaced by fighting.
The figure is triple that seen at the peak of the 2008/9 conflict, with the organisation warning all of its camps are now full.
Justine Greening, the international development secretary, described the situation as "dire", as the UK pledged an extra £3m to provide a month of emergency food for more than 300,000 people.
More than 1,200 Palestinians, most of them civilians, have been killed since the start of the offensive on July 8.
On the Israeli side, 53 soldiers and three civilians have died.
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