Gaza City – Israeli air raids levelled homes in Gaza and Palestinian rockets targeted southern Israel for a second day, stoking fears of another major escalation 14 months after the last war.

Warplanes stepped up attacks with direct hits on four residential buildings in Gaza City, all locations allegedly linked to Islamic Jihad fighters.

Another air attack on Saturday destroyed a car, killing a 75-year-old woman and wounding six other people. Israeli fighter jets dropped two bombs on the house of an alleged Islamic Jihad member.

At least 24 Palestinians, including six children, have been killed and 203 wounded during the two days of attacks, according to the Gaza health ministry.

More than 400 rockets were launched at Israel, most intercepted, setting off air raid sirens and sending people running to bomb shelters. There were no reports of serious casualties, the Israeli ambulance service said.