CAIRO (Reuters) -Israeli forces demolished houses in eastern areas of Gaza City overnight, killing at least 11 people in aerial and tank fire, local health authorities said, as the Palestinian Islamist group Hamas told mediators it was ready to resume ceasefire talks.

An airstrike on Gaza City killed at least 12 people as the conflict entered a new phase with an Israeli offensive to rid the city of Hamas and free hostages.

Hamas held talks with Egyptian mediators over a potential ceasefire while Israel struck Gaza's main city prior to a planned takeover.