Hamas has rejected a 60-day Gaza ceasefire proposal, a senior official in Israel’s Prime Minister Benjamin Netanyahu’s office told reporters Saturday.

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Israeli Prime Minister Benjamin Netanyahu said his government is working toward a 60-day ceasefire in the Gaza Strip and stressed the need to keep Iran under constant surveillance following the 12-day war in June.

The Israeli military said the missile had intended to hit an Islamic Jihad militant in the area but that a malfunction had caused it to fall "dozens of metres from the target".

Israeli media reports that the country’s defense minister has outlined plans to pack hundreds of thousands of Palestinians into a closed zone of the Gaza Strip along the border with Egypt.

Explosions lit up the night sky over the Gaza Strip in a fiery orange glow, as fighting between Israel and Hamas continued. Several blasts were seen across the skyline early Saturday, with plumes of smoke rising.