Israel has blown up what it says was a “subterranean terror city” underneath a central Gaza City square that was used to plot the Oct 7 massacre.

The Israel Defense Force (IDF) said it discovered “terrorist infrastructure” below Palestine Square in the city centre with lengthy tunnels, hiding places and offices belonging to Hamas’s senior military and political leaders.

Aerial footage released by the IDF late on Thursday night showed a series of explosions, destroying the underground infrastructure.

Israel reported in December that it secured control of what it called Hamas’s “elite quarter” in Gaza City from which Hamas leaders operated.

The complex has been described as a “centre of power for Hamas’s military and political wing”.

A reported 600 Hamas fighters were killed in the operation in the Rimal neighbourhood, according to the IDF.

“Palestine Square was a centre of Hamas’ military rule and is surrounded by buildings that served as command and control centres, terror tunnel shafts and strategic buildings belonging to the organisation,” the IDF said in a statement, adding that Hamas’s infrastructure was embedded in a busy neighbourhood full of shops, residential buildings and a school for deaf children.

The network was actively used by Hamas leaders Yahya Sinwar, Mohammed Deif and others, including to direct the Oct 7 attack, according to the IDF.

Despite a reported failure to reach a new agreement with Hamas on a hostage release, Israel is believed to be pursuing fresh efforts to rescue some of the 129 Israelis held in Gaza.

Israel is still reluctant to offer the lasting truce that Hamas is seeking but is willing to offer a ceasefire for two weeks, not one week as previously suggested, according to public broadcaster Kan.

At least 16 people from the extended family of Gaza’s health minister have been killed in an Israeli airstrike on their home in the town of Jabaliya in the north, according to the Palestinian Shehab news agency.

Munir Al Bursh, who has been offering daily updates on casualties, was critically injured in the attack on his sister’s house.

In southern Gaza, an unspecified number of people were reported killed in what appears to be a targeted Israeli drone strike on a civilian car in Rafah.

Al Jazeera on Friday morning published images of crowds surrounding the destroyed vehicle that remained on a largely intact street.

The target of the strike was not immediately reported.

On Israel’s northern border, a 17-hour break in cross-border fire with Hezbollah ended on Friday morning with a sustained salvo of rockets from southern Lebanon where the Iranian-backed terrorist group is operating.