Gaza's civil defence agency said Israeli air strikes on Sunday killed more than 40 Palestinians, including at a market and a water distribution point, as talks for a ceasefire between Israel and Hamas stalled.

At least 48 Palestinians, including children and 10 people fetching water, were killed Sunday in a series of Israeli airstrikes targeting residential areas and displacement tents across the Gaza Strip, according to medical sources.

The attack struck near a facility run by an American aid organization as negotiators from Hamas and Israel wrangle over a potential new cease-fire agreement.