Around 60 bodies were found under the rubble of Gaza City's Shujaiya neighbourhood, officials in the territory said Thursday, after Israel's military declared an end to its operation there.
The upsurge in Israeli bombardment and a resulting displacement of civilians in the eastern district of Shujaiya came as talks were held in mediator Qatar towards a truce and hostage release deal.
US President Joe Biden told reporters that his administration was "making progress" towards a ceasefire agreement as he called for an end to the Gaza war.
His statement came after Prime Minister Benjamin Netanyahu demanded that Israel retain control of key Gaza territory along the border with Egypt -- a condition that conflicts with Hamas's position that Israel must withdraw from all Gaza territory after a ceasefire.
Mohammed Nairi, a Shujaiya resident, told Reuters he and others returning to the neighbourhood had seen "immense destruction that defies description. All the houses were demolished."
Israel's military said on Wednesday it had completed its mission in Shujaiya after two weeks, but bombardments and fighting continued to shake Gaza City.
Witnesses said tanks and troops had moved on to other parts of the city.