GAZA CITY, Gaza Strip — Palestinians rallied by the thousands Friday after a cease-fire took effect in the latest Gaza war, with many viewing it as a costly but clear victory for the Islamic militant group Hamas. Israel vowed to respond with a “new level of force” to further hostilities.

The 11-day war left more than 250 dead — the vast majority Palestinians — and brought widespread devastation to the already impoverished Hamas-ruled Gaza Strip. But the rocket barrages that brought life to a standstill in much of Israel were seen by many Palestinians as a bold response to perceived Israeli abuses in Jerusalem, the emotional heart of the conflict.

Like the three previous wars, the latest round of fighting ended inconclusively.

Israel claimed it inflicted heavy damage on Hamas but once again was unable to halt the rockets. Even as it claims victory, Hamas faces the daunting challenge of rebuilding in a territory already suffering from high unemployment and a coronavirus outbreak, and from years of blockade by Egypt and Israel.

The conflict brought to the surface deep frustration among Palestinians, whether in the occupied West Bank, Gaza or within Israel, over the status quo, with the Israeli-Palestinian peace process all but abandoned for years.

The continued volatility was on display when clashes broke out between Palestinian protesters and Israeli police following Friday prayers at the Al-Aqsa Mosque compound, a flashpoint holy site in Jerusalem sacred to Jews and Muslims. Clashes there earlier this month were one of the main triggers for the war.

Israeli Prime Minister Benjamin Netanyahu fended off criticism from his hawkish base who said he ended the offensive prematurely without a more decisive blow to Hamas.

Israel had done “daring and new things, and this without being dragged into unnecessary adventures,” he said. Its forces caused “maximum damage to Hamas with a minimum of casualties in Israel,” he added.

Netanyahu warned against further attacks, saying, “If Hamas thinks we will tolerate a drizzle of rockets, it is wrong.” He vowed to respond with “a new level of force” against aggression anywhere in Israel.

He said Israeli strikes killed more than 200 militants, including 25 senior commanders, and hit more than 60 miles of militant tunnels. Hamas and the Islamic Jihad militant group have only acknowledged 20 fighters killed.

Hamas leader Ismail Haniyeh said in a televised speech from the Qatari capital of Doha that the war “opened the door to new phases that will witness many victories.” He called it a “quantum leap” that will build support among Palestinians for “resistance” rather than failed negotiations.

The Gaza Health Ministry says at least 243 Palestinians were killed, including 66 children, with 1,910 people wounded. It does not differentiate between fighters and civilians. Twelve people were killed in Israel, all but one of them civilians, including a 5-year-old boy and 16-year-old girl.

Celebrations erupted in Gaza, the occupied West Bank and east Jerusalem at 2 a.m. when the cease-fire took hold.

In Gaza City, thousands took to the streets, and young men waved Palestinian and Hamas flags, passed out sweets, honked horns and set off fireworks.

At noon prayers at Al-Aqsa Mosque in Jerusalem, hundreds held similar celebrations, waving flags and cheering Hamas. It was unclear what sparked the ensuing violence, in which police fired stun grenades and tear gas, and Palestinians threw rocks. Israeli police said they arrested 16 people. Similar clashes broke out in parts of the West Bank.

Gazans had a day of recovery after 11 days of Israeli bombardment.

Shoppers stocked up on fresh fruit and vegetables at a Gaza City open-air market that reopened after being closed during the fighting. Workers swept up rubble.

“Life will return, because this is not the first war, and it will not be the last war,” said shop owner Ashraf Abu Mohammad. “The heart is in pain, there have been disasters, families wiped from the civil registry, and this saddens us. But this is our fate in this land, to remain patient.”

Tens of thousands returned home after sheltering in U.N. schools. At the peak, 66,000 people were crammed inside, but on Friday the number fell under 1,000, U.N. spokesman Sephane Dujarric said.

After the cease-fire, the U.N. sent 13 trucks with food, COVID-19 vaccines, medical supplies and medicines into Gaza. The world body also allocated $18.6 million in emergency humanitarian aid.

The bombardment struck a blow to the already decrepit infrastructure in the small coastal territory, home to more than 2 million Palestinians. It flattened high-rises and houses, tore up roads and wrecked water systems. At least 30 health facilities were damaged, forcing a halt to coronavirus testing in the territory.

The fighting began May 10, when Hamas militants in Gaza fired long-range rockets toward Jerusalem. The barrage came after days of clashes between Palestinian protesters and Israeli police at Al-Aqsa. Heavy-handed police tactics at the compound and the threatened eviction of dozens of Palestinian families by Jewish settlers had inflamed tensions.

Competing claims to Jerusalem have repeatedly triggered bouts of violence. Israel captured east Jerusalem, the West Bank and Gaza in the 1967 war and the Palestinians want them for their future state.