Tank fire and intense gunfights have demolished many surrounding buildings and as many as 650 people have been seized by troops besieging the area.
The onslaught came as US Secretary of State Antony Blinken met Israeli leader Benjamin Netanyahu in a desperate bid to halt a feared ground assault on the Rafah enclave.
They discussed a US plan to avoid the attack, agree a ceasefire and save the lives of many of the 100 hostages still being held by Hamas in Gaza.
It came as Russia and China vetoed a US-promoted UN Security Council resolution demanding an "immediate ceasefire with no time limit" across Gaza.
The move was slammed as "deeply cynical" by US ambassador to the UN Linda Thomas-Greenfield, who claimed they rejected the proposal because it was America who put it forward.
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