Gaza's civil defence agency said that Israel carried out dozens of air strikes and artillery shelling on Gaza City despite US President Donald Trump's appeal to end bombardments after Hamas agreed to key elements of a ceasefire deal.
"It was a very violent night, during which the (Israeli army) carried out dozens of air strikes and artillery shelling on Gaza City and other areas in the Strip, despite President Trump's call to halt the bombing," civil defence spokesman Mahmud Bassal said.
Mr Bassal, whose agency is a rescue force which operates under Hamas authority, added that 20 homes were destroyed in the overnight bombardments.
Gaza City's Baptist Hospital said in a statement that it received casualties from a strike on a home in the city's Tuffah neighbourhood, including four dead and several wounded.
Gaza's Nasser Hospital in Khan Younis said two children were killed and eight people wounded in a drone strike on a tent in camp for displaced Gazans.
The Israeli military's Arabic spokesperson issued a warning for residents of Gaza City, saying it remained a "dangerous" combat zone.
He urged residents in a post on X to avoid going north or nearing any areas where the military operates.
Axios earlier reported that the Israeli military will shift to defensive operations in Gaza and halt its plan to seize Gaza City.
The peace plan for Gaza, presented by Mr Trump this week and backed by Israeli Prime Minister Benjamin Netanyahu, calls for a ceasefire, the release of hostages within 72 hours, Hamas's disarmament and a gradual Israeli withdrawal from Gaza.
Hamas said it was ready to release hostages held in Gaza under the Trump plan but wanted negotiations on the details and a say in the future of the Palestinian territory.
After the Hamas statement, Mr Trump said Israel "must immediately stop bombing Gaza" and that Hamas is ready for peace.
He had issued a deadline to Hamas of tomorrow to accept his Gaza peace deal or face "all hell".
Hamas did not say whether it would agree to a stipulation that it disarm, a demand by Israel and the US that it has previously rejected.
The group said this morning that it was ready to start talks to resolve all outstanding issues ceasefire deal.
"We are ready to begin negotiations immediately to finalise all issues," a senior Hamas official told AFP on condition of anonymity.
Mr Netanyahu's office said Israel "will continue to work in full cooperation with the President and his team to end the war in accordance with the principles set out by Israel, which align with President Trump's vision."
A senior Hamas official told Al Jazeera that the group would not disarm before Israel's occupation of Gaza ends, comments that underscored the gap between the parties.
Qatar has begun coordination with mediator Egypt and the United States to continue talks on Mr Trump's Gaza plan, the Qatari foreign ministry spokesperson said on X.
Mr Trump's plan specifies an immediate ceasefire, an exchange of all hostages held by Hamas for Palestinian prisoners held by Israel, a staged Israeli withdrawal from Gaza, the disarmament of Hamas and the introduction of a transitional government led by an international body.
Meanwhile, Taoiseach Micheál Martin said the announcement by Hamas that it will release all remaining hostages, living and dead, will come as very welcome news to their families.
In a post on X, Mr Martin said that he hoped the move will open the way for an immediate ceasefire and the surging of aid into Gaza.
"There is an opportunity to now to create the lasting peace and I urge all parties to take it," he said.
The announcement by Hamas that it will release all remaining hostages, living and dead, will come as very welcome news to their families who have waited almost two years for their return.
— Micheál Martin (@MichealMartinTD) October 3, 2025
I hope it will open the way for an immediate ceasefire and the surging of aid into Gaza. pic.twitter.com/Ls1KooASzo
Tánaiste and Minister for Foreign Affairs Simon Harris welcomed the Hamas response that all remaining hostages will be released and called on Israel to stop the bombing and allow humanitarian aid into Gaza.
In a statement, he said: "There is also an opportunity to agree a path to a permanent peace and security for Israelis and Palestinians alike. Ireland steadfastly supports a Two State Solution."
Mr Trump welcomed the Hamas statement, posting on social media: "I believe they are ready for a lasting PEACE."
"Israel must immediately stop the bombing of Gaza, so that we can get the Hostages out safely and quickly! Right now, it's far too dangerous to do that. We are already in discussions on details to be worked out."
There was no immediate response from Israel.
The Hamas response did not go as far as Prime Minister Benjamin Netanyahu's demands that the group surrender and disarm.
UK Prime Minister Keir Starmer has labelled Hamas's partial acceptance of the peace plan as a "significant step forwards" and called for an "agreement without delay".
In a statement, he said: "Hamas's acceptance of the US peace plan is a significant step forwards.
"We strongly support President Trump's efforts, which have brought us closer to peace than ever before.
"There is now an opportunity to end the fighting, for the hostages to return home, and for humanitarian aid to reach those who so desperately need it.
"We call on all sides to implement the agreement without delay."
Separately, at least 16 Irish people remain at Ktzi'ot Prison in Israel awaiting deportation, after Israeli authorities intercepted a humanitarian flotilla with around 450 people on board.
It was seeking to deliver aid to Gaza and break Israel's blockade of the territory.
Israel began its offensive in Gaza after the 7 October 2023, Hamas-led attack on Israel in which some 1,200 people were killed and 251 taken as hostages back to Gaza, according to Israeli tallies. Israel says 48 hostages remain, 20 of whom are alive.
Israel's military campaign has killed more than 66,000 people in Gaza, most of them civilians, according to Gaza health authorities. Its assault has destroyed much of the territory while aid restrictions have triggered a famine in parts of Gaza.
Additional reporting Aisling Kenny, PA