Israel launched its offensive on 8 July with the declared objective of stopping rocket fire from Gaza. "There seems to be a strong possibility that international law has been violated, in a manner that could amount to war crimes," Pillay said.
However, Israel, which claims the UN Human Rights Council is biased, is unlikely to co-operate with any authorized UN investigation. Israel's Justice Minister, Tzipi Livni, said her country was acting according to international law.
At least 649 Palestinians and 31 Israelis have been killed in the past 15 days of fighting, officials say. A rocket fired from Gaza on Wednesday also killed a foreign worker in southern Israel, police said.
Meanwhile, US Secretary of State John Kerry arrived in Israel on Wednesday to try to help negotiate a truce. Secretary Kerry flew by military plane to Ben Gurion airport near Tel Aviv. Several US and European airlines continue to suspend civilian flights into Israel after a rocket from Gaza landed near the airport.
Earlier, Israeli Prime Minister Benjamin Netanyahu said Hamas should be held accountable for rejecting an Egyptian ceasefire proposal.