Secretary of State John Kerry has been in Cairo meeting Egypt’s foreign minister and the UN secretary general.
Five Palestinians were killed in the West Bank, while one Israeli soldier was killed in northern Gaza.
Activists called for a “day of rage” over the deaths of 800 Palestinians in Gaza. Israel has lost 36 people.
Most of the Palestinian deaths have been civilians, while 34 of Israel’s dead have been soldiers. One Thai worker was also killed by rocket fire in Israel.
Israel launched new air strikes on targets in Gaza on Friday, and said it had killed a senior member of militant group Islamic Jihad.
The Israeli military reported new rocket launches by militants inside the Gaza Strip, with several intercepted.
Israel launched its military offensive on 8 July with the declared objective of stopping Hamas firing rockets into Israel, extending its operation since then to destroy tunnels dug by militants to infiltrate its territory.
Hopes rose for at least a limited deal on Friday as it emerged that John Kerry, Egyptian Foreign Minister Sameh Shoukry and UN chief Ban Ki-moon were planning a news conference for later in the day.
John Kerry is expected to leave the region on Friday, whether or not a deal is agreed.
The plan is thought to include provision for a temporary pause in hostilities that could begin as soon as this weekend.
Israel wants to keep its military in Gaza and continue disabling Hamas tunnels.
Any plan must be approved both by Israel’s security cabinet and senior Hamas leaders, including Qatar-based Khaled Meshaal.
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