Israeli tanks and warplanes pounded Gaza City on Thursday, prompting long lines of scared Palestinian civilians to flee as the military intensified its assault on the territory's largest urban hub.

Thick columns of smoke billowed into the sky as AFP journalists and witnesses saw a steady stream of Gazans heading south on foot, in vehicles and on donkey carts -- their meagre belongings piled high.

"There is artillery fire, air strikes, quadcopter and drone gunfire. The bombing never stops," said Aya Ahmed, 32, sheltering with 13 relatives in Gaza City.

"The world doesn't understand what is happening. They (Israel) want us to evacuate south — but where will we live? There are no tents, no transport, no money."

Palestinians say the cost of a ride to the south has soared, in some cases top

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