Hamas has implemented a 24-hour ceasefire, announced shortly after Israel called off a truce due to "incessant" rocket fire from the Gaza Strip.
Israeli PM Benjamin Netanyahu has already accused the militant group of violating the truce.
Hamas spokesman, Sami Abu Zuhri, told Reuters: "In response to UN intervention and considering the situation of our people and the occasion of Eid, it has been agreed among resistance factions to endorse a 24-hour humanitarian calm, starting from 2pm on Sunday (12pm BST).
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A 12-hour ceasefire was observed by both sides on Saturday to allow for Gaza residents to obtain supplies and retrieve bodies still buried in the rubble.
But the Israeli Defence Force announced on Sunday morning it would resume air, ground and naval raids after continued rocket attacks from Hamas.
One soldier was killed in the attacks bringing the Israeli death toll up to 43, 40 military and three civilians.
Over 1,000 Palestinians have been killed, mostly civilians including many children.
During the previous ceasefire, Israel continued operations to destroy tunnels dug by militants.
Israeli military spokesman Col Peter Lerner, said: "This is a bit premature and we are watching the situation carefully.
"But perhaps indeed they have decided again to hold their fire and it will enable us to deal with and sort out these terrorist tunnels which have been built along our border."
Former deputy prime minister John Prescott has called Israel's offensive a "brutally disproportionate and grossly indiscriminate" bombardment a war crime.
Lord Prescott said any other country would be made an international "pariah" if it acted in the same way.
He also directly compared the situation in Gaza with a concentration camp, suggesting the Nazi Holocaust should "give Israelis a unique sense of perspective and empathy with the victims of a ghetto".
There has been international condemnation of the civilian death toll with marches taking place all over the world.
Thousands gathered in London on Saturday, outside the Israeli embassy.Suggest a correction