"The entire system failed. It's not just one component. It's the entire defense architecture that evidently failed to provide the necessary defense for Israeli civilians," he told CNN of the surprise invasion from Gaza militants. "This is a Pearl Harbor type of moment for Israel, where there was reality up until today, and then there will be reality after today."

Town-by-town and farm-by-farm fighting is still underway given Hamas and Palestinian Islamic Jihad (PIJ) reportedly control swathes of southern territory and even military outposts in Israel.

Netanyahu and his cabinet now must be contemplating what will surely be a high-risk rescue operation and potential ground incursion.

Every hour results in even more incredible, shocking footage being released of dead Israeli soldiers and civilians. The Times of Israel is reporting that over 200 Israelis have been killed, and at least 1,000 injured. The death toll is also mounting into the hundreds on the Gaza side as Israel retaliates.