A truce between Israel and Hamas has taken hold after the worst violence in years, but clashes broke out around the Al Aqsa mosque in Jerusalem where similar scenes had touched off the conflict.
Israel bombardment of Gaza and militant rocket attacks on Israeli towns ceased after 11 days under an agreement mediated by Egypt, but the violence in Jerusalem erupted as Cairo prepared to negotiate with both sides on ways to maintain stability.
Israeli police fired stun grenades towards Palestinians who threw rocks and petrol bombs at officers outside the mosque.
Police spokesman Micky Rosenfeld said they had entered the area around the mosque after stones were thrown at them.
"They are dealing with these disturbances in order to contain the situation," he said.
Five more bodies were pulled from the rubble in the densely populated Palestinian enclave, taking the death toll to 243, including 66 children, with more than 1900 wounded.
In Israel, the military said a soldier had been killed as well as 12 civilians; hundreds have been treated for injuries after rocket salvoes that caused panic and sent people rushing into shelters as far away as Tel Aviv.
Palestinians who had huddled in fear of Israeli shelling poured into Gaza's streets, embracing one another in celebration in front of bombed-out buildings. Mosque loudspeakers feted "the victory of the resistance." Cars drove around flying Palestinian flags and honking horns.
In the countdown to the 2am cease-fire, Palestinian rocket salvoes continued and Israel carried out at least one air strike.
The violence erupted on May 10, triggered by Palestinians' anger at what they saw as Israeli curbs on their rights in Jerusalem, including during police confrontations with protesters at Al-Aqsa mosque during the Ramadan fasting month.
Israeli Prime Minister Benjamin Netanyahu said the operation had hit the ability of Hamas, the Islamist group which runs Gaza, to launch missiles at Israel.
Netanyahu said the Israeli military had attacked and destroyed Hamas's extensive tunnel network in Gaza, its rocket factories, weapons laboratories and storage facilities and killed more than 200 militants, including 25 senior operatives.
"Hamas can't hide anymore. That's a great achievement for Israel," he said in a televised address.
"We eliminated an important part of Hamas's and Islamic Jihad's command echelon. And whoever was not killed, knows today that our long arm can reach him anywhere, above ground or underground."
Hamas however cast the fighting as successful resistance to a militarily and economically stronger foe.
"It is true the battle ends today but Netanyahu and the whole world should know that our hands are on the trigger and we will continue to grow the capabilities of this resistance," said Ezzat El-Reshiq, a senior member of the Hamas political bureau.
El-Reshiq told Reuters in Doha the movement's demands included protecting the Al-Aqsa mosque and stopping Palestinians being evicted from their homes in East Jerusalem.
Amid growing global alarm, Biden had urged Netanyahu to seek de-escalation, while Egypt, Qatar and the United Nations sought to mediate.
The truce appeared to be part of a two-stage deal with Cairo sending security delegations to Tel Aviv and the Palestinian territories to agree on measures to maintain stability.
After days of Israeli air strikes that destroyed residential towers and damaged electricity lines, Gaza officials said 16,800 homes were damaged and residents were getting three or four hours of power compared with 12 hours before the fighting.
Palestinian officials put the cost of Gaza reconstruction in the tens of millions of dollars, while economists said the fighting could curb Israel's economic recovery from the COVID-19 pandemic.
Biden said on Thursday aid would be sent quickly to Gaza. It would be coordinated with the Palestinian Authority - run by Hamas' rival, President Mahmoud Abbas, backed by the West and based in the Israeli-occupied West Bank - "in a manner that does not permit Hamas to simply restock its military arsenal".
Hamas is deemed a terrorist group in the West and by Israel, which it refuses to recognise.
Australian Associated Press
Sign up for our newsletter to stay up to date.