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Hamas's armed wing said it was ready to release the hostages it abducted if Israel freed all the Palestinian prisoners it was holding.
7,326 Palestinians had been killed in the retaliatory air strikes, including 3,038 children.
The besieged Palestinian enclave is already reeling from almost three weeks of Israeli bombardment, which was triggered by a brutal attack in southern Israel by Hamas militants.
The heavy bombing at Ahli Arab hospital in cental Gaza has left more than 200 dead. The toll is feared to go as high as 500.
Murad Abu Murad was killed over the past day when fighter jets struck an operational centre of Hamas.
The Palestinian territory, one of the most crowded places on Earth, has been under siege since Saturday in a near-constant bombardment that Gazan health officials say has killed more than 1,000 people.
Hamas militants holding Israeli soldiers and civilians hostage on Monday threatened to execute a captive for each home in Gaza hit without warning.
The External Affairs Ministry was approached for permission only on September 9 for the conference that was scheduled for October 17.
The body of a toddler was among those recovered from a municipal building which was used as a shelter.
Israeli media said the death toll from the Hamas attacks had climbed to 900 people, while Gaza officials reported nearly 700 people were killed.