Israeli soldiers battled Hamas fighters in the streets of southern Israel on Sunday and launched retaliation strikes that leveled buildings in Gaza, while in northern Israel a brief exchange of strikes with Lebanon’s Hezbollah militant group raised fears of a broader conflict.

There was still some fighting underway more than 24 hours after an unprecedented surprise attack from Gaza, in which Hamas fighters, backed by a volley of thousands of rockets, broke through Israel’s security barrier and rampaged through nearby communities. The fighters took captives back into the coastal Gaza enclave, including women, children and the elderly, who they will likely try to trade for thousands of Palestinian prisoners held by Israel.