The Israeli military says it missed its intended target after Gaza officials said 10 Palestinians - including six children - were killed in a strike at a water collection point.
Another 17 people were wounded in the strike on a water distribution point in Nuseirat refugee camp, said Ahmed Abu Saifan, an emergency physician at Al Awda Hospital.
The Israel Defence Forces (IDF) said it had intended to hit an Islamic Jihad militant but a "technical error with the munition" had caused the missile to fall "dozens of metres from the target".
The IDF said the incident is under review, adding that it "works to mitigate harm to uninvolved civilians as much as possible" and "regrets any harm to uninvolved civilians".
Officials at Al Awda Hospital said it received 10 bodies after the Israeli strike on the water collection point and six children were among the dead.
Ramadan Nassar, who lives in the area, said around 20 children and 14 adults were lined up Sunday morning to fill up water.
When the strike occurred, everyone ran and some, including those who were severely injured, fell to the ground, he said.
At least 32 people were killed in Israeli strikes in the Gaza Strip on Sunday, local health officials said.
Two women and three children were among nine killed after an Israeli strike on a home in the central town of Zawaida, officials at Al Aqsa Martyrs Hospital said.
Israel has claimed it hit more than 150 targets in the besieged enclave in the past day.
The latest strikes come after the Israel military opened fire near an aid centre in Rafah on Saturday. The Red Cross said 31 people were killed.
The IDF has said it fired "warning shots" near the aid distribution site but it was "not aware of injured individuals" as a result.
The war in Gaza started in response to Hamas's attack on Israel on 7 October 2023, which killed 1,200 people and saw about 250 taken hostage.
More than 58,000 Palestinians have since been killed, with more than half being women and children, according to Gaza's health ministry, which does not distinguish between civilians and combatants in its count.
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US President Donald Trump has said he is closing in on another ceasefire agreement that would see more hostages released and potentially wind down the war.
But after two days of talks this week with Israeli Prime Minister Benjamin Netanyahu, there were no signs of a breakthrough, as a new sticking point emerged over the deployment of Israeli troops during the truce.
Hamas still holds 50 hostages, with fewer than half of them believed to be alive, after most of the rest were released in ceasefire agreements or other deals.
(c) Sky News 2025: IDF blames 'technical error' after Gaza officials say children collecting water killed in strik
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