A ceasefire between the Israelis and the Palestinians in Gaza has been delayed – but a diplomatic push is under way to try to stop the fighting.
On Tuesday night, Hamas official Ayman Taha said an Egyptian-brokered truce had been finalised and would take effect from 10pm.
But a spokesman for Israeli Prime Minister Benjamin Netanyahu said the announcement was premature.
The remains of government building in Gaza City The United States has now stepped in, with Secretary of State Hillary Clinton arriving in Cairo for talks with Egyptian President Mohamed Morsi.
During her flight, a bomb ripped through a bus in the Israeli city of Tel Aviv injuring at least 10 people - clouding the prospects of a durable ceasefire.
Mrs Clinton has vowed to work on a truce between the two sides.
Smoke rises after an apparent Israeli air strike in the Gaza Strip She said: "In the days ahead, the United States will work with our partners here in Israel and across the region toward an outcome that bolsters security for the people of Israel, improves conditions for the people of Gaza and moves toward a comprehensive peace for all people of the region."
She arrived from Israel where she earlier met with Mr Netanyahu in Jerusalem, while also travelling to the West Bank city of Ramallah for a meeting with Palestinian President Mahmoud Abbas, who told her "Egypt was the key to everything".
Pope Benedict XVI also spoke of his concern of the escalating violence on Wednesday.
"Hatred and violence are not the solution," he said, adding that he encouraged "the initiatives and efforts of those who are trying to reach a ceasefire and promote negotiations".
A rocket fired from Gaza hit an apartment building near Tel Aviv Meanwhile, Iran announced it was providing military and financial assistance to the Palestinians.
"We are proud to defend the people of Palestine and Hamas ... and that our assistance to them has been both financial and military," said Iran's parliamentary speaker Ali Larijani.
Israel intensified its bombardment of Gaza on Tuesday night, with airstrikes just 10 minutes apart.
Artillery shells and missiles were also fired from gunboats.
One Israeli airstrike hit the seventh floor of a media building in Gaza City.
The Israel Defence Forces tweeted a warning to all foreign journalists operating in Gaza to stay away from Hamas militants just minutes later.
Parachute flares illuminate the Gaza Strip for an artillery barrage Some 138 rockets were fired from Gaza into Israel. The Iron Dome system intercepted 53 rockets which were headed for built-up areas, but 14 got through.
One hit an apartment building in the town of Rishon Letsion, near Tel Aviv. Six people were injured in the attack.
Rockets were also aimed at Jerusalem, where residents took to underground bomb shelters. However, none fell on the city.
Israel launched the offensive one week ago in an attempt to end months of rocket attacks out of the Hamas-run territory, which lies on Israel's southern flank.
After assassinating Hamas' military chief, it has carried out a campaign of airstrikes, targeting rocket launchers, storage sites and wanted militants.
The campaign has killed more than 130 Palestinians, including 20 on Tuesday, and wounded hundreds of others.
Five Israelis have been killed by rocket fire, including a soldier and a civilian contractor.
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