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Relatives carry the the bodies of children during the funeral of eight members of the Abu Jarad who were killed overnight in an Israeli strike in Beit Lahia, north of the Gaza strip
A total of 50,000 people in Gaza have fled their homes as Israel steps up its ground offensive on the Gaza strip. The refugees are seeking sanctuary in 34 UN shelters in the strife-hit region, relief workers said. At least 60 Palestinians are thought to have been killed since Israel launched the ground offensive in Gaza on Thursday.

Israeli troops battled Hamas militants in Gaza on the second day of the operation as the Palestinian death toll from the 12-day offensive topped 340, according to officials in Gaza. 70 of those killed are children.

Health Ministry spokesman Ashraf al-Kidra said overnight airstrikes killed 12 people while the the death toll from the offensive has gone up to more than 340 Palestinians. An Israeli soldier was killed after the start of the ground operation, probably by friendly fire, and an Israeli civilian was killed earlier this week.

The sound of tank fire and heavy machine guns mixed with the mosques' morning call to prayer along the Gaza-Israel border. The Israeli military said three soldiers were wounded in overnight fighting, one seriously. Israeli troops were staying close to the border and have yet to enter heavily populated areas. Today Israeli bulldozers demolished more than a dozen tunnels in the Gaza Strip and Palestinian authorities reported intensified airstrikes and shelling.

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Israeli soldiers uncovered 34 shafts leading into about a dozen underground tunnels, some as deep as 30 meters, that could be used to carry out attacks, the military said.

Still, Palestinian gunmen disguised in Israeli uniforms managed to infiltrate Israel from Gaza using another tunnel and today killed two Israeli soldiers and injured several others, the military said. At least one Palestinian was killed in the clash.

Hamas said 12 of its fighters participated in the attack and that the group took some of the soldiers' weapons back to their hideouts.

In two other confrontations, Palestinian gunmen jumped out of tunnels and shot at soldiers who returned fire. Two of the gunmen were killed. Another militant died when the explosive vest he was wearing went off, the military said.

In one instance, the militants were found with tranquilizers and handcuffs, indicating they 'intended to abduct Israelis,' according to the military.