Dozens of people have been killed or injured in a blast at a refugee camp in the Rafah area, the Hamas-run health ministry in Gaza has said.
Videos from the scene in the southern Gaza Strip showed a large explosion and intense fires burning.
The Israel Defense Forces (IDF) said it had targeted two senior Hamas leaders at one of the group's compounds and would review reports fire had spread to shelters, harming civilians.
Hours earlier, Hamas had fired eight rockets from Rafah towards Tel Aviv, the first long-range attacks on the city since January.
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