Egypt-brokered ceasefire came into force after Israeli air raids killed 34 Palestinians.

The Palestinian group Islamic Jihad says an Egyptian-brokered ceasefire with Israel has been agreed after air attacks killed at least 34 people in Gaza.

A Gaza Strip ceasefire agreement to end two days of fighting that has left 34 people dead came into effect early on Thursday. The "ceasefire agreement comes as a result of Egypt's efforts" and has been endorsed by "Palestinian factions including Islamic Jihad".

The agreement stipulates that Palestinian factions must ensure a return to calm in Gaza and "maintain peace" during demonstrations, while Israel must stop hostilities and "ensure a ceasefire" during demonstrations by Palestinians.

Whereas there was no immediate confirmation of the agreement from Israel.

The agreement came into force around 5:30 am local time (03:30 GMT), after the number of deaths rose to 34 in Gaza strip by Israeli airstrikes.

"Six members of the Abu Malhous family, including three children and two women, were killed in an Israeli strike on their family home in Deir al-Balah in the southern Gaza Strip," the Palestinian ministry of health said.

The top Islamic Jihad commander was also killed in the crossfire in Gaza. The two sides had been exchanging fire, and Israel's military said it recorded more than 350 incoming rockets.

In Israel, air raid sirens wailed and fireballs exploded as air defense missiles intercepted rockets, sending Israelis rushing to bomb shelters.

In Gaza, residents surveyed the damage and mourned the dead outside a mortuary and at funerals.

Israeli Prime Minister Benjamin Netanyahu had said Islamic Jihad must stop its rocket attacks or "absorb more and more blows".

Islamic Jihad spokesman Musab al-Barayem had said the group was not interested in mediation as it retaliated over the killing of one of its commanders.

Israel killed senior Islamic Jihad commander Baha Abu al-Ata and his wife Asma early on Tuesday. It said Ata was responsible for rocket fire at Israel as well as other attacks and was planning more violence, with the military calling him a "ticking bomb".