Palestinian Prime Minister Ismail Haniyeh has called on the United Nations to intervene to stop violence escalating in the Gaza Strip.
Palestinian security officials say the Israeli army has detained more than 10 ministers and members of the Hamas-led government during a night-time raid.
It is not yet known where they were seized and there has been no comment from the Israelis.
Israeli forces have dug into positions in southern Gaza after an incursion to try to free a captured Israeli soldier.
Palestinian security sources also say the body of an Israeli settler kidnapped at the weekend by militants has been found in the West Bank city of Ramallah.
Mr Haniyeh called on the United Nations to step in to deter Israel and protect his people.
Mr Haniyeh also expressed his sorrow at Washington's position.
US President George W Bush's spokesman has said that Israel had the right to defend itself and the lives of its citizens.
A spokesman said that Hamas militants have precipitated the crisis to their involvement in the abduction of the Israeli soldier.
For its part, Hamas says that it was retaliating for Israeli attacks on militants targets in Gaza in which a number of civilians have been killed in recent weeks.