Gaza's Hamas-run civil defence says 11 people were killed, all from the same family, after the bus they were in was hit by an Israeli tank shell in northern Gaza.
The Abu Shaaban family, it said, were trying to reach their home to inspect it when the incident happened in the Zeitoun neighbourhood of Gaza City on Friday night.
This marks the deadliest single incident involving Israeli soldiers in Gaza since the start of the ceasefire eight days ago.
The Israeli military stated that soldiers fired at a suspicious vehicle that had crossed a delineation line, demarcating areas still occupied by Israeli forces in Gaza.
Israeli soldiers continue to conduct operations in more than half of the Gaza Strip, as part of the first phase of the ceasefire agreement.
Civil defence spokesman Mahmud Bassal told AFP that the victims were killed while trying to check on their home in the area, with the casualties including women and children.
The Israel Defence Forces (IDF) expressed that it fired "warning shots" when the suspicious vehicle approached troops, claiming that the vehicle posed an imminent threat.
Hamas responded, asserting that the family was targeted unjustly. The IDF previously warned Palestinians against entering areas still controlled by Israeli forces, yet many are unaware of troop positions due to limited communication and the absence of markings on the ground.
Amidst the chaos, Israeli Defence Minister Israel Katz announced on Friday plans to install visual indicators to clearly mark the yellow line.
In a related development, Hamas released the body of Israeli hostage Eliyahu Margalit to the Red Cross, while efforts to locate other hostages continue against a backdrop of ongoing military operations.
Since the escalation began on October 7, over 67,900 people have reportedly been killed in Gaza due to Israeli attacks, according to the Hamas-run health ministry, raising concern and prompting international scrutiny.