Israel said it killed a senior Hamas commander on Saturday in a strike on a vehicle inside Gaza.
In a statement, the Israeli military said it had struck a key Hamas terrorist in Gaza City.
The Hamas-run Civil Defence spokesman, Mahmoud Basal, told the BBC that four people were killed in the strike. He said multiple passers-by were also injured by the blast.
Local sources said the strike may have targeted Raed Saad, a senior commander in Hamas's armed wing, the Qassam Brigades.
The BBC is prevented by Israel from reporting independently from inside Gaza and cannot verify details of the incident.
Saad is believed to be a member of a newly formed five-member leadership military council established since a ceasefire took hold in October. He is regarded as one of the most prominent Qassam commanders and led several brigades during Hamas's 7 October attacks on Israeli communities east of Gaza City.
Israel has attempted to kill him on multiple occasions. One notable attempt occurred during a surprise Israeli operation in Gaza City in March 2024, during which Israeli forces sought to arrest or kill him. Sources at the time indicated that Saad managed to escape the targeted complex moments before the raid.
Saad has long been considered one of Israel's most wanted Hamas figures, with Israeli attempts on his life spanning over two decades.
Saturday's attack occurred on the Palestinian-controlled side of the so-called Yellow Line, which has divided Gaza since an unstable US-led ceasefire commenced on 10 October.
Israeli forces control the area to the east of the line, which constitutes just over half of the Gaza Strip.
The first phase of US President Donald Trump's 20-point plan for peace in the region required the return of all living and deceased hostages taken during the Hamas-led attack on southern Israel on 7 October 2023.
Approximately 1,200 people were killed during the attack, and over 250 were taken hostage. All hostages have returned except for the remains of Israeli police officer Ran Gvili, 24, who is believed to have been killed while fighting Hamas gunmen in Kibbutz Alumim.
Since the outbreak of violence, more than 70,000 Palestinians have allegedly been killed by Israeli military action according to Gaza's Hamas-run health ministry.
The focus of diplomatic efforts is now shifting to the next stage of President Trump's plan, which calls for the disarmament of Hamas as part of broader de-radicalization and redevelopment initiatives in Gaza.
This plan envisions Gaza being governed by a "temporary transitional governance of a technocratic, apolitical Palestinian committee" overseen by a "Board of Peace" led by Trump.
Security provisions would involve an International Stabilisation Force, although its specifics remain unclear.
The ultimate goal is for a reformed Palestinian Authority to take control of the territory, leading to a potential Israeli withdrawal and, subsequently, a pathway toward Palestinian self-determination and statehood.
Many aspects of the plan have sparked controversy in Israel, where Prime Minister Benjamin Netanyahu has consistently rejected calls for the establishment of a Palestinian state.
Trump is set to meet Netanyahu to discuss the plan in the US on 29 December.
