A Palestinian teenager wounded in clashes with the Israeli army three days ago died of his injuries on Monday, medical and security sources said.

Israeli fire killed 10 Palestinians across Gaza on Monday, while Egypt proposed a new ceasefire that would open key crossings into the blockaded territory.

Since an earlier truce collapsed on August 19, the death toll in Gaza has risen steadily with at least 113 Palestinians killed in more than 350 Israeli air strikes across the territory.

Mohammed al-Khatib fears for his life every time he gets behind the wheel. In wartime, providing drinking water to homes and schools in Gaza means dicing with death.

Marking the first day of the new school year in Gaza, dozens of children lined up in the courtyard early on Sunday morning to sing the Palestinian national anthem.

But this year, class did not begin.

Israel said Sunday it had killed a top Hamas financial official in an air strike on Gaza City, as it continued a policy of targeted assassinations against the Palestinian group.

Mohammed al-Ghul "was an important Hamas actor who dealt with transferring funds to build terror infrastructure in Gaza, such as tunnels, and was a key target," Israeli army spokesman Major Arye Shalicar said.

Iran's elite Revolutionary Guard said Sunday it has brought down an Israeli stealth drone above the Natanz uranium enrichment site in the center of the country.

"A spy drone of the Zionist regime (Israel) was brought down by a missile... This stealth drone was trying to approach the Natanz nuclear zone," the corps said in a statement on its official website sepahnews.com.

Two rocket launchpads were found Sunday in the southern region of Tyre, from which two rockets were fired overnight Saturday at northern Israel.

“At 22:30 on Saturday unknown assailants fired two rockets from Dheira town”, three kilometers (nearly two miles) from the border with Israel, the army said in communique on Sunday.

Israeli Prime Minister Benjamin Netanyahu told his ministers on Sunday that the military campaign against Gaza militants would continue until peace is restored to southern Israel.

Israeli air strikes pounded Gaza Sunday, killing at least a dozen people, after Prime Minister Benjamin Netanyahu warned the bloody offensive would continue as long as necessary.

Israel and Hamas, who have been fighting for 48 days, looked unlikely to end their deadly face-off even after Egypt called for an indefinite ceasefire and new truce talks to end a war that has killed more than 2,100 Palestinians and 68 Israelis, mostly soldiers.

While they may be united in negotiations over a Gaza truce with Israel, rival Palestinian movements have not set aside historic disagreements which threaten to shatter their fragile alliance, experts say.