The Israeli military said the missile had intended to hit an Islamic Jihad militant in the area but that a malfunction had caused it to fall “dozens of metres from the target”.

Medics say those killed in a strike that hit a water distribution point included a 12-year-old. Source: AP / Abdel Kareem Hana

Hours later, 12 people were killed by an Israeli strike on a market in Gaza City, including a prominent hospital consultant, Ahmad Qandil, Palestinian media reported.

The ministry says over half of those killed are women and children.

Ceasefire talks stalled

The indirect talks over a US proposal for a 60-day ceasefire are being held in Doha, but optimism that surfaced last week of a looming deal has largely faded, with both sides accusing each other of intransigence.

Israel’s army says a missile malfunctioned and missed its target, hitting a water distribution site. Source: AAP / AP / Alex Brandon

Netanyahu in a video he posted on Telegram on Sunday, said Israel would not back down from its core demands – releasing all the hostages still in Gaza, destroying Hamas and ensuring Gaza will never again be a threat to Israel.

On Saturday, a Palestinian source familiar with the truce talks said that Hamas rejected withdrawal maps which Israel proposed, because they would leave around 40 per cent of the territory under Israeli control, including all of Rafah.