No electricity, water or fuel to Gaza until hostages returned: Israel

Palestinians lined up outside bakeries and grocery stores in Gaza on Thursday after spending the night surrounded by the ruins of pulverised neighbourhoods darkened by a near-total power outage. 

Israel launched new airstrikes and said it was preparing for a possible ground invasion.

International aid groups warned that the death toll in Gaza could mount after Israel stopped all deliveries of food, water, fuel and electricity and the tiny enclave's crossing with Egypt closed.

The war which was ignited by a bloody and wide-ranging assault on Israel by Hamas militants has already claimed at least 2,600 lives on both sides.

Lt. Col. Richard Hecht, an Israeli military spokesman, told reporters on Thursday that forces are preparing for a ground maneuver" should political leaders order one. 

A ground offensive in Gaza, whose 2.3 million residents are densely packed into a sliver of land only 40 kilometers (25 miles) long, would likely bring even higher casualties on both sides in brutal house-to-house fighting.

As Israel pounds Gaza, Hamas fighters have fired thousands of rockets into Israel since their weekend assault. Militants in the territory are also holding an estimated 150 people taken hostage from Israel.

Palestinians fleeing airstrikes could be seen running through the streets, carrying their belongings and looking for a safe place. 

Tens of thousands have crowded into UN-run schools while others are staying with relatives or even strangers who let them in.

Lines formed outside bakeries and grocery stores during the few hours they dared open, as people tried to stock on food before shelves are emptied.

On Wednesday, Gaza's only power station ran out of fuel and shut down, leaving only lights powered by scattered private generators.

A senior official with the the International Committee of the Red Cross warned that the lack of electricity could cripple hospitals.

As Gaza loses power, hospitals lose power, putting newborns in incubators and elderly patients on oxygen at risk. Kidney dialysis stops, and X-rays can't be taken, said Fabrizio Carboni, ICRC's regional director. Without electricity, hospitals risk turning into morgues.

After Hamas militants stormed into Israel on Saturday and massacred hundreds of people in their homes, on the streets and at an outdoor music festival, Israeli Prime Minister Benjamin Netanyahu vowed to crush and destroy the group, which has governed Gaza since 2007.

The Israeli government is under intense public pressure to topple the militant group rather than continuing to try to bottle it up in Gaza after four previous conflicts ended with Hamas still firmly in charge of the territory.

Israel has mobilized 360,000 reservists, massed additional forces near Gaza and evacuated tens of thousands of residents from nearby communities.