JERUSALEM (AP) - Israel dramatically escalated its aerial assault targeting hundreds of Hamas sites in the Gaza Strip Thursday as Palestinians reported the strikes also hit a home and a beachside cafe, raising the total number of people killed in this week's offensive to at least 85. Israel's missile defense system also once again intercepted rockets fired by Gaza militants at the country's two largest cities, Jerusalem and Tel Aviv.
The Israeli military said it had struck a total of some 500 targets throughout the day, focusing on underground tunnel networks and rocket launching sites. In all, the military said it has hit some 860 sites since the operation started Tuesday.
Gaza militants fired more than 140 rockets at major Israeli residential areas Thursday, Israel's military said. Rockets fired at southern Israel damaged homes, infrastructure and spread panic. Israelis rushed to bomb shelters as sirens wailed in major cities. About 5 million Israelis are in range of the Palestinian rocket attacks. No Israelis have been killed.
A rocket hit a car in the southern Israeli city of Ashdod Thursday night engulfing it in flames. Israel's emergency services said nobody was injured in the attack, reversing an earlier statement in which it said a man was hurt.
Israel has mobilized 20,000 reservists for a possible ground operation into Gaza, but for the time remains focused on maximizing its air campaign, said Lt. Col. Peter Lerner, a military spokesman. A ground invasion could lead to heavier civilian casualties on the Palestinian side and put Israeli ground forces in danger.
Neither side is showing any sign of halting their heaviest fighting since an eight-day battle in late 2012. Israel says that Hamas must cease rocket fire from Gaza for Israel to consider a truce. Militants have fired hundreds of rockets, striking across the length of Israel and disrupting life across the country.
"The ground option needs to be the last option and only if it is absolutely necessary. It is a carefully designed plan of action," Lerner said.
The "Iron Dome" defense system has intercepted at least 70 of the projectiles destined for major cities. The system is designed to intercept rockets headed toward populated areas, while allowing others to fall in open areas.
The limitations of the Iron Dome were seen late Thursday when a heavy barrage of Palestinian rockets hit the major southern city of Beersheba and other areas severely damaging homes.
As Israel pressed forward, the U.N. Security Council met in New York to discuss the situation. Addressing the meeting, U.N. Secretary-General Ban Ki-moon condemned the rocket fire out of Gaza, while also calling Israel's offensive "intolerable."
"Once again civilians are paying the price for the continuation of conflict," he said. "My paramount concern is the safety and well-being of all civilians, no matter where they are."
Israel's U.N. ambassador, Ron Prosor, pulled out a cellphone during the meeting and played a recording of an air-raid siren as he described the difficult circumstances of people living within rocket range. His Palestinian counterpart, Riyad Mansour, decried the Israeli "barrage of death, destruction and terror."
The Israeli security Cabinet met to discuss its next moves.
Secretary of State John Kerry, in Beijing for a summit with Chinese leaders, said the U.S. is trying to stem the surging violence in a way that allows the Jewish state to continue defending itself from Hamas rocket fire. He called it a "dangerous moment" for the Mideast.
Kerry said he has spoken to Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas.
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