According to medical officials, the Israeli regime's airstrikes killed Enas Khammash, a pregnant Gazan woman, and her 18-month-old daughter Bayan, as well as another Palestinian.
Shortly after, an Israeli airstrike flattened the five-story cultural centre in the Shati refugee camp, a crowded district of Gaza City.
The cabinet decision to continue operating in the Gaza Strip against Hamas terrorists comes after two days of rocket barrages, many of which resulted in physical injuries and severe trauma to Israelis as well as damage to homes and vehicles.
Abu Mujahed, spokesman of the Popular Resistance Committee, a smaller faction in Gaza, said on his Facebook page: "Upon Egyptian and worldwide efforts, a ceasefire between Palestinian resistance began conditional on the commitment of the occupation".
It was the third major escalation since July and came despite attempts by United Nations officials and Egypt to secure a long-term truce between Israel and Hamas, the Islamist movement that runs the Gaza Strip.
Since the escalation on Wednesday, Palestinian militants fired scores of rockets including a long-range missile deep into Israel and Israeli aircraft struck more than 150 targets in Gaza.
According to Israeli press reports, a total of nine Israelis have recently been injured by rockets fired from Gaza.
IDF said demonstrators were throwing rocks and burning tires at Israeli troops, causing them to respond with live fire "in accordance with the rules of engagement".More news: Everton agree to sign Yerry Mina from Barcelona
"The government is in dire need of individual initiatives and investments to provide power so that it can become independent of the occupation (Israel), step by step", Shifa' Abu Sa'adi, head of natural resources at the Palestinian economy ministry, told Reuters.
Palestinian sources said late on Thursday that the deal would formally went into effect at midnight and it has taken hold "on the basis of mutual calm."
The West Bank only gets around three-quarters of the power its 3 million people need, imported mostly from Israel and, to a far lesser extent, Jordan.
Gaza militants had earlier Thursday declared a halt to rocket fire and the lack of a strong response to the strike on the building later in the day suggested they were returning to it.
"Everyday life in besieged Gaza is shaped by Israeli policy", IMEU added, posting a video compilation that captures the living conditions of millions of the almost two million people living in the occupied Gaza Strip. The military said it intercepted some 25 rockets, while most of the others landed in open areas.
"In the past 24 hours", he stated, "the Air Force attacked over 150 substantial targets along the Strip, including weapons storage, military compounds, training compounds, a building used by Hamas for military purposes, and terror cells".
Israel's latest attack on Gaza was characterized as the largest escalation since 2014, when Israel killed more than 2,000 Palestinians in a seven-week military operation. One Israeli soldier has been shot dead by a Palestinian sniper.
On Wednesday, the Israeli military shelled the Palestinian territory after civilians working on the Gaza border fence came under fire.
He added that "if the current escalation however is not contained immediately, the situation can rapidly deteriorate with devastating consequences for all people".