Witnesses said the shooting on Sunday occurred around 6.00 am local time near Rafah, close to a site run by the US-Israeli-backed Gaza Humanitarian Foundation (GHF), where people had gathered in hopes of receiving food.
Israel’s military said it fired warning shots at suspects who approached troops in what it considers an active combat zone.
Survivors described tanks firing and people being shot as they fled.
It was the latest in a number of shootings that have killed more than 120 people and wounded hundreds since the rollout of a new food distribution system, according to Gaza's Health Ministry.
Critics say the GHF system forces civilians into danger zones and fails to meet urgent humanitarian needs.
