The campaign, called Gideons Chariots, aims to gain control of combat in several key areas. The Israeli military said it carried out more than 670 airstrikes last week, killing many Hamas fighters, Reuters reported.
The new operation comes as Israel faces increased pressure on the humanitarian crisis in Gaza due to the aid freeze imposed in March.
Last week, at least 464 Palestinians were killed, of which 130 were killed in the night of May 18 alone, according to the Gaza Ministry of Health. An airstrike hit a concentration camp in Khan Younis, killing many women and children, injuring dozens others, and burning down tents.
"Many families have been completely wiped out from civil records by the attacks last night," said Khalil Al-Deqran, a spokesperson for the Gaza Ministry of Health. Meanwhile, Israel insists the targets are terrorist infrastructure.
Faced with severe food and health shortages, Israel has said it will ease the blockade and allow some basic food imports into Gaza to curb hunger.
However, the health system in Gaza has been almost paralyzed. 75% of ambulances cannot operate due to lack of fuel, and the rescue agency warned that all vehicles could stop operating within 72 hours.
Israel said the decision to loosen aid was to facilitate the expansion of the military campaign and put pressure on Hamas to return the hostages. However, indirect negotiations between Israel and Hamas in Qatar have not made progress.
Hamas still demands a ceasefire, withdrawal of Israeli troops, end of blockade and release of Palestinian prisoners in exchange for the return of all hostages. Meanwhile, Israel has proposed a ceasefire associated with the deportation of Hamas leaders and the decentralization of Gaza - something Hamas has denied.
Israeli military commander Eyal Zamir told soldiers in Gaza that the army would create flexible conditions for the government to negotiate and exchange hostages, suggesting the possibility of adjusting the intensity of the operation.
Prime Minister Benjamin Netanyahu is under domestic pressure as relatives of the hostages speak up. Ms. Einav Zangauker, mother of the adopted children Matan Zangauker, said: They are tormenting us. Bring our children back! All 58 children!
So far, according to Gaza officials, the Israeli military campaign has killed more than 53,000 people, mostly civilians, and nearly all of the population of 2 million in Gaza have been displaced.