Dozens of people were killed in Rafah late Sunday after an Israeli airstrike on an area where displaced civilians were sheltering in tents and sparked a fire that tore across the camp, local officials said.

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The strike drew condemnation from world leaders just days after the United Nations' top court ordered Israel to halt its offensive on the southern Gaza city where more than a million had sought refuge. In an address to the Knesset on Monday, Israeli Prime Minister Benjamin Netanyahu called the strike "a tragic mistake." As global outcry mounted, the Israel Defense Forces initially said it had targeted two senior Hamas leaders, did not strike a designated humanitarian area and took steps to reduce the risk of harming civilians, but said a full investigation would be conducted into "the deaths of civilians in the area of the strike."

Qatar warned it could hinder efforts to reach a cease-fire deal, which had been renewed in Europe over the weekend. Adding to tensions, Egypt's military said one of its soldiers was killed after reports of a firefight with Israeli forces at the Rafah border area.

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The Gaza health ministry reported that at least 35 people had been killed in the Tal al-Sultan neighborhood, the majority of them women and children. First responders had warned the number of casualties could rise as many were trapped in flames that erupted following the bombardment. And on Monday, the ministry said the death toll had risen to at least 45 people. "This massacre is the largest in the city of Rafah in months," the spokesman for the Palestinian Civil Defense in Rafah, Muhammad Al-Mughir, told NBC News. He stressed that the area hit was a designated "humanitarian area" next to U.N. warehouses.

The IDF said its strike targeted two Hamas leaders who it said were responsible for organizing terrorist attacks in the occupied West Bank area. It said that it was aware of reports that civilian tents were ignited in the strike and that the incident was "under review." In a subsequent statement, the IDF said that the airstrike was based on "prior intelligence information regarding the presence of the senior Hamas terrorists at the site." It said that before the strike "a number of steps were taken to reduce the risk of harming uninvolved civilians" and that "it was assessed that there would be no expected harm to uninvolved civilians." It said that an investigation was underway into "the circumstances of the deaths of civilians in the area of the strike. The IDF regrets any harm to uninvolved civilians during combat."

As outrage mounted over Sunday's Rafah attack, mediators Qatar and Egypt condemned the assault as a violation of international law. Following weekend talks involving CIA Director William Burns in Paris, an Israeli official told NBC News the Israeli government was hopeful talks may resume this week. But French President Emmanuel Macron said he was "outraged by the Israeli strikes that have killed many displaced persons in Rafah," adding "these operations must stop." The European Union's foreign policy chief, Josep Borrell, also condemned the strike and said he was "horrified."

A spokesperson for the U.S. National Security Council said images of the scene were heartbreaking. "Israel has a right to go after Hamas, and we understand this strike killed two senior Hamas terrorists who are responsible for attacks against Israeli civilians. But as we've been clear, Israel must take every precaution possible to protect civilians," the spokesperson said. "We are actively engaging the IDF and partners on the ground to assess what happened, and understand that the IDF is conducting an investigation." President Joe Biden had been vocal warning any full-scale assault on Rafah could see him suspend the shipment of certain weapons.

More than 35,000 people have been killed in Gaza over seven months of war, according to local health authorities. Aid groups have warned of catastrophic conditions for civilians who lack access to food and clean water, fueling a possible famine in parts of the enclave.