GAZA CITY, Gaza Strip (AP) — Thousands of Palestinians massed Friday along Israel's frontier, with dozens approaching and breaching the perimeter fence that separates Gaza from Israel, even as Egypt stepped up efforts reach a lasting cease-fire between the territory's Hamas rulers and Israel.

The militant Hamas group praised the turnout as a challenge to Israel, which was mulling a large-scale military response after a rocket was fired from Gaza on Wednesday and destroyed a house in southern Israel.

Gaza's Health Ministry reported 77 Palestinians were wounded by Israeli fire and six of them we...