Witnesses at the Shijaiyah market said a series of strikes hit at short intervals whilst people were shopping during the partial ceasefire announced by the Israeli military earlier today.
The military have not commented on the strikes.
The area next to a petrol station was hit and a fire engulfed the densely populated area near the market. Then more strikes hit the market directly, according to local reports. Witness Salim Qadoum said:
Graphic video footage recorded at the scene showed scores of injured people and several dead bodies.
108 Palestinians have died today in airstrikes and shelling across Gaza today.
Israel said three soldiers were killed after a house Palestinians had rigged with explosives collapsed after they identified an entrance to a tunnel inside.
More than a dozen soldiers were wounded in heavy fighting, it said.