The Hamas-run health ministry in the Gaza Strip reported that more than 200 people were killed and dozens were injured as a result of Israeli military actions in Nuseirat.
Sources in Gaza accuse the Israeli military of conducting the operation in a busy urban market area visited by families with children on weekends.
Gaza's rescue services report that the number of casualties is expected to rise as debris is cleared.
Hamas political bureau chief Ismail Haniyeh accused Israel of a "massacre in Nuseirat" and vowed that "the Palestinian people will not lay down their arms."
IDF Spokesman Rear Admiral Daniel Hagari said the IDF knows about under 100 Palestinian casualties. "I don’t know how many of them are terrorists," he said.