Israeli airstrikes killed at least 11 people in Gaza City on Saturday, Palestinian medical officials said, even as Israel signalled it was considering scaling back its military offensive after receiving Hamas' response to a U.S.-brokered peace proposal.

Doctors at Al-Shifa Hospital said rescue teams pulled six bodies from the rubble of two homes in Gaza's Al-Tuffah neighbourhood and another five from a house in Al-Shati refugee camp. Several others were wounded, some critically.

Residents said Israeli drones also struck a group of civilians on Al-Jalaa Street in central Gaza City, killing and wounding several, while further raids hit homes in Al-Tuffah. Witnesses reported heavy overflights of Israeli jets and drones and described the night as one of the most violent in weeks.

Palestinian medics said emergency crews were struggling to reach some strike sites because of continuing fire from Israeli forces deployed around western Gaza City.

The Israeli military said its forces remained encircling Gaza City and warned civilians against returning to areas north of Wadi Gaza, describing them as "a dangerous combat zone."

In a related incident, witnesses said Israeli troops opened fire on dozens of civilians trying to return north through the Netzarim corridor, despite earlier reports that some units had withdrawn.

The violence came as Hamas and other Palestinian factions announced they had submitted a collective response to the U.S. proposal. The groups said the reply reflected "in-depth national consultations" and aimed to end Palestinian suffering and halt "an ongoing war of extermination."

They urged the Palestinian Authority to convene an urgent national meeting to discuss implementation, including the creation of an independent Palestinian body to administer Gaza.

Palestinian President Mahmoud Abbas welcomed the U.S. initiative, reiterating that sovereignty over Gaza belongs to the State of Palestine. In a statement carried by the official news agency WAFA, Abbas said he was ready to work with Washington, the United Nations, and Arab partners to secure a full ceasefire, release hostages and prisoners, and begin reconstruction.

He stressed that Gaza must be linked administratively and politically with the West Bank under Palestinian institutions, backed by Arab and international support, and renewed calls for an independent Palestinian state with East Jerusalem as its capital.

On Friday, Hamas said it had agreed in principle to release Israeli hostages taken on Oct. 7, 2023, and to hand Gaza's administration to a technocratic government under the U.S. plan, though it did not address Israel's demand for the group's disarmament.

U.S. President Donald Trump, who announced the plan earlier this week, said Hamas' response showed it was "ready for a lasting peace" and urged Israel to halt its bombardment "so we can quickly and safely extract the hostages."