At least three people have been killed in an Israeli bombing raid on a United Nations school in the Gaza Strip.

Hundreds of terrified Palestinians were taking shelter in the building after fleeing fierce fighting between Israeli soldiers and Hamas fighters.

The latest fatalities come after Israel warned that fighting in Gaza could get worse before its mission against Hamas is complete.

Troops are deep inside the region trying to seize ground from the militants.

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More than 540 Palestinians have been killed since Israel began its campaign ten days ago. At least 18 are reported to have died in overnight shelling.

Many civilians lack food, water and power and hospitals are struggling to cope with the casualties of the conflict.

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