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An Israeli air strike Sunday on a house and a tent sheltering displaced people killed at least 10, including five children, as Palestinians observed the first day of Eid al-Fitr.
Gaza's civil defence agency said earlier Sunday that eight people were killed "following a pre-dawn Israeli air strike on a house and a tent sheltering displaced people in Khan Younis".
At least 20 people have been killed since dawn on Sunday.
Hamas and Israel have acknowledged receiving a new truce proposal from mediators aimed at halting hostilities in Gaza during the holiday.
A senior Hamas official stated on Saturday that the group had approved a new ceasefire proposal put forward by mediators and urged Israel to support it.
Israeli Prime Minister Benjamin Netanyahu's office confirmed receipt of the proposal and stated that Israel had submitted a counterproposal in response.
However, the details of the latest mediation efforts remain undisclosed.