BEIT HANOUN, Gaza Strip — Hamas resumed rocket fire Saturday on Israel after rejecting Israel’s offer to extend a humanitarian truce, the latest setback in international efforts to negotiate an end to the Gaza war.

Despite the Hamas rejection, Israel’s Cabinet decided to extend a truce for 24 hours, until midnight Sunday. However, it warned that its military would respond to any fire from Gaza and would continue to demolish Hamas military tunnels during this period.

A temporary lull on Saturday saw Palestinians return to neighborhoods reduced to rubble and allowed medics to collect close to 150 bodies, according to Palestinian health official Ashraf al-Qidra.

With the retrieval of the corpses, the number of Palestinians killed reached 1,047 in 19 days of fighting, while more than 6,000 were wounded, he said.

Israel says hundreds of those killed were militants, and Gaza officials confirm the dead include “fighters.” Israel says it is doing its utmost to prevent civilian casualties, including sending evacuation warnings to residents in targeted areas, and blames Hamas for putting civilians in harm’s way.

US Secretary of State John Kerry and European foreign ministers, meeting in Paris, had hoped to transform the humanitarian timeout into a more sustainable truce. That effort was thrown into doubt with Hamas’ rejection of the extension.

Hamas spokesman Sami Abu Zuhri said any truce must include a withdrawal of Israeli forces from Gaza, and that tens of thousands of displaced people must be allowed to return to their homes. Israel’s current terms are “not acceptable,” he said in a text message to journalists.

Israel has lost 42 soldiers and two civilians, and a Thai worker also has been killed. Three soldiers were killed in fighting Saturday, and two more succumbed to injuries sustained in combat days earlier. Six of the soldiers were killed by Hamas gunmen emerging from tunnels dug under the border into Israel.

Three IDF soldiers killed Saturday, July 26, from left to right: Roy Peles, Avraham Grintzvaig, Gal Bason (Photo credit: Courtesy IDF)

Three IDF soldiers killed Saturday, July 26, from left to right: Roy Peles, Avraham Grintzvaig, Gal Bason (Photo credit: Courtesy IDF)

In the northern Gaza town of Beit Hanoun, scores of homes had been pulverized, wreckage blocked roads and power cables dangled in the streets. Hardest-hit were areas close to the border with Israel, areas from where Gaza terrorists typically fire rockets.

Manal Kefarneh, 30, wept as she inspected her damaged home.

On an unfinished top floor, she and her husband had been raising chickens. The couple collected those dead and replenished water for the living in hopes they will survive the war.

“What did we do to deserve this?” she asked. “All of the Arab leaders watch what’s going on here like it’s a Bollywood film.”

Israeli strikes have destroyed hundreds of homes, including close to 500 in targeted hits, and forced tens of thousands of people to flee, according to Palestinian rights groups. Israel blames Hamas, the terror group which seized control of Gaza in 2007, for placing its rocket launchers, tunnel openings and other terrorist infrastructure in and near homes.

Across Gaza, 147 bodies were pulled from the rubble Saturday, officials said. In southern Gaza, a tank shell killed 20 members of an extended family who sought refuge inside a building, al-Qidra said.

Palestinians gather around the rubble of a building on Saturday July 26, where at least 20 members of the Al Najar extended family were reported killed by an Israeli strike in Khan Younis, in the southern Gaza Strip. (photo credit:AP/Eyad Baba)

Palestinians gather around the rubble of a building on Saturday July 26, where at least 20 members of the Al Najar extended family were reported killed by an Israeli strike in Khan Younis, in the southern Gaza Strip. (photo credit:AP/Eyad Baba)

Israeli legislator Ofer Shelah of the centrist Yesh Atid party said Israeli troops are “fighting with an enemy dug in within the civilian population, dug in underground or within the houses there.” Referring to the widespread destruction, he said that “those are the consequences of such a fight.”

The military took some Israeli journalists into the Gaza border areas where troops were operating. Footage broadcast on Israeli television station Channel 10 showed homes booby-trapped with explosives, as well as grenades, mines and rockets stored there. Tunnels opened up inside houses.

Soldiers said some buildings blew up after being hit by gunfire from all the explosives inside. Col. Ofer Vinter, head of the Givati infantry brigade, said almost every house was booby-trapped with explosives and that Gaza fighters “emerge from the ground all the time.”

Standing over a tunnel concealed in a house, he said: “We cannot leave here before we finish dealing with all the tunnels.”

Israel launched a major air campaign in Gaza on July 8 and later sent ground troops into the Hamas-ruled territory in an operation it said was aimed at halting Palestinian rocket fire and destroying cross-border tunnels it views as a threat.

Shelah, the legislator, said about 50 tunnels have been discovered so far.

US Secretary of State John Kerry, third from left, stands with from left, Qatari Foreign Minister Khaled al-Attiyah, Turkish Foreign Minister Ahmet Davutoglu, French Foreign Minister Laurent Fabius, British Foreign Secretary Philip Hammond, German Foreign Minister Frank-Walter Steinmeier and Italian Foreign Minister Federica Mogherini after their meeting regarding a cease-fire between Hamas and Israel in Gaza, Saturday, July 26, 2014, at the foreign ministry in Paris, France. With a 12-hour humanitarian cease-fire in Gaza Saturday, Kerry is continuing with efforts to reach a longer truce between Israel and Hamas. (photo credit: AP/Charles Dharapak)

US Secretary of State John Kerry, third from left, stands with from left, Qatari Foreign Minister Khaled al-Attiyah, Turkish Foreign Minister Ahmet Davutoglu, French Foreign Minister Laurent Fabius, British Foreign Secretary Philip Hammond, German Foreign Minister Frank-Walter Steinmeier and Italian Foreign Minister Federica Mogherini after their meeting regarding a cease-fire between Hamas and Israel in Gaza, Saturday, July 26, 2014, at the foreign ministry in Paris, France. (photo credit: AP/Charles Dharapak)

On Friday, Israel rejected a Kerry proposal for a weeklong truce because it had no provisions for the Israeli military continuing to demolish tunnels, Israeli media reported at the time.

Under the Kerry proposal, talks would begin during the temporary truce on easing the border blockade of Hamas-ruled Gaza.

Hamas has said it would not halt fire until it wins guarantees that the border blockade, enforced by Israel and Egypt, would be lifted.

Any new border arrangements for Gaza would likely give a role to Western-backed Palestinian President Mahmoud Abbas, the main political rival of Hamas. Hamas had seized Gaza from Abbas in 2007, triggering the Gaza blockade by Israel and Egypt.

However, Abbas, who heads the West Bank-based Palestinian Authority, reached a power-sharing deal earlier this year with Hamas. Under the deal, a government of technocrats headed by Abbas was to prepare for new elections in the West Bank and Gaza.

Egypt wants forces loyal to Abbas to be posted on the Gaza side of the mutual border before considering open the Rafah crossing there, Gaza’s main gate to the world. Hamas officials have said they do not oppose such an arrangement, but would not surrender control over its thousands-strong security forces, meaning Hamas would remain the de facto power in Gaza.

French Foreign Minister Laurent Fabius said in Paris on Saturday that he and his counterparts from other nations are calling on both sides to negotiate a sustainable cease-fire.

Such a truce should meet Israeli security concerns, but also “the Palestinians’ expectations in terms of economic development and access to Gaza,” he said. “We are convinced of the need to involve the Palestinian Authority in achieving these objectives.”

IDF Chief of Staff Benny Gantz speaks with Israeli soldiers near the border with the Gaza Strip, on July 26, 2014 (Photo credit: Yehudah Gross/IDF Spokesperson/Flash90)

IDF Chief of Staff Benny Gantz speaks with Israeli soldiers near the border with the Gaza Strip, on July 26, 2014 (Photo credit: Yehudah Gross/IDF Spokesperson/Flash90)

Israel initially decided to extend Saturday’s 12-hour truce by four hours, to midnight Saturday. Hamas swiftly rejected the idea of an extension.

Shortly after the Hamas announcement, Gaza militants fired eight rockets and three mortars at Israel, the military said. Gaza militants said they fired 42 rockets, including two that were aimed at Tel Aviv, Israel’s second largest city, where police dispersed a peace rally attended by several thousand people.

In Gaza, a 36-year-old Palestinian man was killed by a sniper near the central Gaza town of Deir el-Balah shortly after the 12-hour truce ended, according to Gazan sources.

Meanwhile, anger over Israel’s Gaza operation has sparked a series of protests in the West Bank. Since Thursday, nine Palestinians have been killed in clashes between Israeli forces and Palestinians protesters.

Among those were two Palestinians killed by army fire Saturday, including a 23-year-old in the town of Jenin and a 16-year-old near the town of Bethlehem, hospital officials said.

Times of Israel staff contributed to this report