The area of the attack was designated for the displaced, Palestinian health and civil emergency service officials said.
At least 35 Palestinians have been killed and a dozen wounded after Israeli airstrikes.
The strikes took place in the southern Gaza Strip city of Rafah.
The area of the attack was designated for the displaced, Palestinian health and civil emergency service officials said.
Confirming the attack, the Israeli military said its air force struck a Hamas compound in Rafah, adding that the strike was carried out with “precise ammunition and on the basis of precise intelligence.”
It said it took out Hamas’ chief of staff for the West Bank and another senior official behind deadly attacks on Israelis.
“The IDF is aware of reports indicating that as a result of the strike and fire that was ignited several civilians in the area were harmed. The incident is under review.”
The spokesman for the health ministry in the Hamas-run Gaza, Ashraf Al-Qidra, said 35 people were killed and dozens others, most of them women and children, were wounded in the attack.
The strike took place in Tel Al-Sultan neighborhood in western Rafah, where thousands of people were taking shelter after many fled the eastern areas of the city where Israeli forces began a ground offensive over two weeks ago.
The International Committee of the Red Cross said its field hospital in Rafah was receiving an influx of casualties, and that other hospitals also were taking in a large number of patients.