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Benjamin Netanyahu has vowed Israel can "stand alone", after the US warned arms shipments could be stopped if he orders a full-scale control of Rafah in Gaza.
US President Joe Biden has repeatedly warned against the operation, saying that it would cross a "red line".
But Netanyahu dismissed the US warning, saying Israel would fight on.
"If we need to ... we will stand alone. I have said that, if necessary, we will fight with our fingernails," the prime minister said.
Yoav Gallant, Netanyahu's defense minister, dismissed the US warnings, saying Israel's "enemies as well as ... best of friends" should understand that his country "cannot be subdued".
"We will stand strong, we will achieve our goals," he added.
Israeli troops took control and closed the Rafah crossing with Egypt at the start of their operation.
Israeli forces said they were conducting "targeted raids" against Hamas elements remaining in the city. However, the Israeli government has refused to rule out a full-scale control, leading to Biden's warning he would not supply it with the munitions to do so.
Hamas and Palestinian Islamic Jihad (PIJ) - which are proscribed as terrorist organizations by Israel, the US and other countries - said they were targeting Israeli forces on the eastern outskirts with mortar bombs and anti-tank missiles.
Hamas also said it had blown up a booby-trapped tunnel east of Rafah underneath three Israeli military vehicles. The IDF said three of its soldiers were moderately wounded as a result of the explosion.
GunazTV
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