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, Ednews informs citing BBC.
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.
The strike came hours after Hamas fired eight rockets from Rafah towards Tel Aviv, the first long-range attacks on the city since January.
In a statement released after the blast inside Gaza on Sunday night, the IDF said it had "eliminated" two senior Hamas figures - Yassin Rabia and Khaled Nagar - in a "precise" air strike "in north-west Rafah".
The IDF said it had targeted Hamas militants with precision weapons.
Hamas-run authorities said 35 people had been killed and dozens injured at a camp for displaced Palestinians north-west of Rafah, away from recent military operations in a designated humanitarian safe zone.
It said women and children are among the dead.