Gaza City (CNN) — Hundreds of Palestinians fled in panic into Gaza City on Sunday as Israeli troops focused their firepower on the nearby town of Shaja’ia. The shelling and bombing killed at least 40 people, a Gaza hospital spokesman said.

The assault wounded 300 people, Gaza health ministry spokesman Dr. Ashraf al-Qedra said.

Some residents said they had received warnings from Israel in previous days saying they should flee, but the residents said they felt it was futile, and that they could face the same dangers in other parts of Gaza.

Overnight, Hamas’ military wing also fired rockets from Shaja’ia toward Israel. The militant group also turned down an invitation by Egypt to talk about a cease-fire initiative the country had proposed.

In Shaja’ia on Sunday, bodies lay in streets under gashes blasted into apartment buildings, said people who had escaped the violence, as the shelling continued. Read More.