The death toll has risen after Hamas fired rockets into Israel from Gaza in a surprise attack and Israel declared war.

According to Israeli officials, at least 40 people have died in Israel and more than 700 people have been injured. The Palestinian Health Ministry said 160 people were killed in Gaza and over a 1,000 others were injured.

According to Al Jazeera, Israeli forces have surrounded a house in the Israeli settlement of Ofakim and negotiations are underway with Palestinian fighters who are allegedly holding hostages. According to the Jerusalem Post, dozens of hostages are being by Hamas in the Kibbutz Be’eru in southern Israel.

President Joe Biden was briefed Saturday "on the appalling Hamas terrorist attacks in Israel," according to the White House.

"Senior national security officials briefed the President this morning on the appalling Hamas terrorist attacks in Israel. The President will continue to receive updates and White House officials remain in close contact with Israeli partners," the White House said in a statement.

-ABC News' Fritz Farrow

U.S. Defense Secretary Lloyd Austin released a statement saying he is "closely monitoring" the situation in Israel and extended his condolences to the families of those who have lost their lives.

"Over the coming days the Department of Defense will work to ensure that Israel has what it needs to defend itself and protect civilians from indiscriminate violence and terrorism," Austin said.

Separately, a U.S. defense official said that Austin had a call with his team Saturday morning, including U.S. Centcom Commander Gen. Eric Kurilla. Israel falls under Centcom’s area of responsibility.

-ABC News' Luis Martinez

Israeli Prime Minister Benjamin Netanyahu made a video statement on social media, saying simply, “We are at war. We will win," in his first comments, made in Hebrew, after the attack.

"Citizens of Israel, we are at war, not in an operation or in rounds, but at war. This morning, Hamas launched a murderous surprise attack against the State of Israel and its citizens. We have been in this since the early morning hours. I convened the heads of the security establishment and ordered – first of all – to clear out the communities that have been infiltrated by terrorists," Netanyahu said. "This currently is being carried out. At the same time, I have ordered an extensive mobilization of reserves and that we return fire of a magnitude that the enemy has not known. The enemy will pay an unprecedented price. In the meantime, I call on the citizens of Israel to strictly adhere to the directives of the IDF and Home Front Command. We are at war and we will win it."

In his first on-camera comments about Israel’s evacuation request for northern Gaza, Israeli Defense Minister Yoav Gallant urged Gaza residents to head south. He noted that Hamas will use them as "camouflage," “therefore we need to separate them."

"Those who want to save their life, please go south. We are going to destroy Hamas infrastructures, Hamas headquarters, Hamas military," he said.

Defense Secretary Lloyd Austin, who appeared at the press conference with Gallant, dodged ABC News' question about how Israel could end the Hamas terror threat without inevitably risking civilian lives. Austin called Israel's military "professional" and "disciplined."

Austin described how ISIS had also embedded themselves in civilian populations and how the anti-ISIS coalition "protected civilians and created corridors for humanitarian movement even in the midst of a pretty significant fight. So again, this is a professional force. It is well led, and I have every expectation that it will be disciplined."

Austin added, "I would tell you that in countering ISIS, I felt as if we were staring evil in the eye, it was truly evil. And what we've seen from Hamas, it takes that evil to another level."

-ABC News' Matt Seyler and Luis Martinez