Three Israeli soldiers have been killed in a Hamas rocket attack near one of the main crossings used to deliver aid into Gaza, Israel has said.
After the strike, Israel closed the Kerem Shalom crossing for the night.
In the southern Gazan city of Rafah, there have reportedly been at least 12 fatalities from Israeli attacks.
Early on Monday, the Israeli military announced that it was advising Gazans seeking refuge in some areas of Rafah to leave.
It coincides with the breakdown of negotiations to secure a ceasefire agreement in Gaza and the release of captives.
Ten rockets were fired, according to the Israeli Defense Forces (IDF), from a location close to the Rafah crossing in southern Gaza, which is roughly 3.6 kilometers (2.2 miles) from Kerem Shalom.
The armed wing of Hamas took credit for the attack and stated that a neighboring Israeli army facility was its target.
The IDF stated they were fired from a location about 350 meters away from a civilian shelter.
It described the launches as "another clear example of the terrorist organisation's systematic exploitation of humanitarian facilities and spaces, and their continued use of the Gazan civilian population as human shields" .
Hamas disputes that it use people as human shields.
The Israeli military declared that it had hit a neighboring military building as well as the launcher from which the rounds were fired in Rafah.
Gaza health officials report that at least 12 individuals were killed in two Israeli attacks on Sunday.
The most recent violence happens after two days of negotiations in Cairo, Egypt, with mediators.
Though there hasn't been much progress—both Israel and Hamas have stated that they won't budge on important demands—talks are anticipated to get back up on Monday.
Hamas announced that a delegation would visit Qatar to confer with the organization's top brass.
Reports state that CIA chief William Burns, who has also participated in mediation attempts, has left the Egyptian capital for negotiations in Doha.
According to reports, the proposed truce calls for a 40-day ceasefire that would free some Palestinian inmates detained in Israeli jails as well as hostages in Gaza.
Although Hamas stated that it saw the present plan in a "positive light," it seems that the primary bone of contention is whether or not the ceasefire agreement would be long-term.
The group is demanding that any agreement include a clear commitment to ending the conflict, but Israeli Prime Minister Benjamin Netanyahu dismissed that demand on Sunday.
"This [Hamas's demands] cannot be accepted by the state of Israel. We are not ready to tolerate a scenario in which the Hamas brigades emerge from their bunkers, retake control of Gaza, reconstruct their military apparatus, and resume threatening Israeli citizens in the settlements around the southern mountains and throughout the nation."
"This will be a terrible defeat for the state of Israel," he stated.
On October 7, waves of Hamas gunmen broke through Gaza's border into Israel, killing roughly 1,200 people and capturing over 250 others. This marked the start of the conflict. In many Western nations, the group is prohibited as a terrorist organization.
Figures from the territory's Hamas-run health ministry show that over 34,600 Palestinians have died and over 77,900 have been injured during the subsequent Israeli military campaign in Gaza.
Pressure to move on with the long-promised offensive in Gaza's southernmost city, Rafah, where an estimated 1.4 million Palestinians have sought sanctuary after fleeing fighting in the northern and center parts of the strip, has come from inside Mr. Netanyahu's far-right coalition.
The US has insisted on seeing a plan to protect displaced Palestinians before it can support a military operation that might result in large civilian losses.
The IDF announced early on Monday that it was urging citizens living in the eastern neighborhoods of Rafah to head toward a "extended humanitarian zone."
"More food, water, medicine, tents, field hospitals, and other supplies are available in the enlarged humanitarian zone.
"In accordance with the approval of the government, an ongoing situation assessment will guide the gradual movement of civilians in the specified areas in eastern Rafah, to the humanitarian area," a statement published on X, which used to be Twitter,
Israel has declared that capturing Rafah is essential to victory in its seven-month-long offensive against Hamas.
However, with over 1.4 million Palestinian refugees taking refuge there, concerns over a significant number of civilian casualties have been expressed by Western nations and Egypt, a neighboring country.
