(CNN) -- Israeli ground forces battling Hamas militants in Gaza struck "at least 20 armed gunmen" Friday, while five civilians were wounded when 15 Palestinian rockets were fired at Israeli communities, the Israeli military said.
A woman cries as she holds the body of one of her relatives at the mortuary of Al-Shifa hospital on Friday.
In all, 25 Hamas sites were attacked in the latest round of fighting, the Israel Defense Forces said.
Israel, which has been working to control weapons-smuggling through tunnels between Gaza and Egypt, also reported that troops "uncovered a tunnel containing weaponry and explosive devices" and the passageway was detonated.
It said troops fired at armed gunmen planting explosives and soldiers shot at an approaching squad of gunmen. The Israeli military gave no estimate on casualties in any of the incidents.
In Israel, Ashdod and Qiryat Gat were among the cities struck by the 15 Palestinian rockets and mortars. One of the five injured was classified as seriously injured. 
Watch latest report from Gaza »
Earlier in the day, Israeli airstrikes rattled northern and southern Gaza as Israeli forces stepped up their campaign against the territory's Hamas leaders.
Streets were deserted after sundown Thursday in Rafah, along the Egyptian border, as Israeli airstrikes shook buildings a kilometer (0.6 miles) from their target. No running water was available Friday, and stocks of food were running low, CNN Senior International Correspondent Ben Wedeman reported from Rafah.
Other bombardments set the United Nations' main relief aid compound on fire and damaged a Red Crescent hospital and a foreign journalists' building.
The Al-Quds Hospital, run by the Palestine Red Crescent Society, was hit twice Thursday -- the second time around 10:30 p.m., leaving the facility in flames and forcing the staff and patients to evacuate onto the streets. The hospital is located in the Tal Al-Hawa neighborhood, west of central Gaza City.
Meanwhile Hamas announced that Israeli forces killed Saeed Siam, one of its leaders, along with his son and brother, and vowed to avenge his death.
Siam served as interior minister in the Hamas-led government before it was dissolved in 2007. Watch Saeed Siam's house after attack »
As it stepped up its military campaign, Israel Thursday dispatched senior Defense Ministry official Amos Gilad to Cairo to discuss a cease-fire proposal. Gilad was continuing talks Friday in the Egyptian capital. A Hamas delegation is also in Cairo, talking with leaders there who are trying to hammer out a temporary truce.
Israeli officials have said that it was likely the Jewish state would increase its military incursion in Gaza as movement toward a cease-fire progressed.
Israel said it initiated the operation into Gaza -- which is controlled by Hamas -- to stop rocket fire on its southern cities and towns. Thirteen Israelis, including 10 soldiers, have died in the operation in Gaza and from rocket strikes on southern Israel, according to the Israeli military. More than 1,000 Palestinians have been killed, including many civilians, Palestinian medics said.
U.N. Secretary-General Ban Ki-moon is in the region as part of the diplomatic effort to secure a truce. He met with Israeli officials on Thursday, and condemned an Israeli strike that damaged the U.N. Relief and Works Agency's compound in Gaza City that sparked a massive fire and injured three people. Watch Israeli response to strike on U.N. compound »
As day broke, residents could be seen returning to their damaged homes to retrieve belongings before fleeing north. Some seemed exhausted, as frequent explosions and the sound of Israeli warplanes overhead made sleep difficult. But others remained defiant. A boy on a donkey cart could be seen shaking his fist as an Israeli jet flew overhead.
Friday's strikes followed the heaviest shelling of the Palestinian territory since Israel launched its military operation nearly three weeks ago.
Israel's push deep into Gaza City triggered heavy battles with Hamas militants, and the third-ranking Hamas leader in the territory died in an Israeli airstrike Thursday, the Islamic militant group reported.
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