Israeli Occupation Forces (IOF) and Palestinians traded heavy fire Friday as hopes faded of securing a truce to end days of violence and fighting.

The violence has been met with international calls for de-escalation, with the European Union pushing Thursday for an "immediate comprehensive ceasefire".

Israeli Occupation announced it was "striking Islamic Jihad targets" in the Palestinian territory, while AFP journalists saw air strikes hit Gaza City.

Violence broke out Tuesday when the Israeli Occupation killed three top members of the Islamic Jihad.

Islamic Jihad said the latest rocket fire, seen by AFP journalists, was a "response to the assassinations and the continued aggression against the Palestinian people".

At least 31 Palestinians have been killed, according to Gaza's health ministry, including civilians as well as children.

Earlier Friday there had been cautious optimism a truce may be nearing, with an Islamic Jihad source telling AFP a deal drawn up by Cairo had been circulated among the group's leadership.

"Israel must commit to stopping the assassinations in Gaza and the West Bank," a second source within Islamic Jihad said, detailing the group's key condition for a ceasefire.

However, Israeli Occupation Prime Minister Benjamin Netanyahu issued a decision to continue the attack on the Gaza Strip and stop the truce talks, according to Roya's correspondent.