More than 80 Palestinians were killed by Israeli fire across the Gaza Strip on Wednesday, most of them in Gaza City, local hospitals said.

Women and children were among at least 20 who died when a strike hit a building and tents sheltering displaced families near Firas market in Gaza City's central Daraj neighbourhood overnight, according to first responders.

The Israeli military stated it struck two Hamas fighters; however, it disputed the casualty figures reported by local authorities.

With ground forces advancing into Gaza City, Israeli officials claim operations are focused on dismantling Hamas' capabilities and securing the release of hostages. This offensive comes amid a dire humanitarian crisis, as essential services collapse and hundreds of thousands of residents evacuate.

Overcrowded conditions have been reported as those fleeing seek refuge southward amidst ongoing bombings that have rendered many areas unsafe. Reports from Gaza City highlight the emotional toll, as families mourn the loss of loved ones amidst the destruction.

Witness accounts speak of devastating pictures, with bodies being retrieved from rubble and families in despair as they navigate this crisis.

As the situation intensifies, international eyes remain towards diplomatic efforts aimed at achieving a resolution, while the humanitarian impact continues to deepen.