It came as Israel's Defence Minister Yoav Gallant urged Palestinians to help them "find and eliminate" the terror group's leaders.
One of those he named is Hamas leader Yahya Sinwar. Mr Gallant said: "I tell the residents of Gaza if you reach him before us, it will shorten the war."
The leader of Hamas's armed wing, Mohammed Deif, is another of the army's top targets and security sources say Sinwar and Deif are now somewhere in the network of tunnels below Gaza.
Speaking at a news conference, Mr Gallant said the Israel Defence Forces had completed the encircling of Gaza City and had "entered populated areas".
Earlier, US Secretary of State Mr Blinken said no to any ceasefire after meeting Arab leaders in Amman.
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