The Palestinian Health Ministry in Gaza issued a statement saying the incident occurred at the Kuwait Roundabout.
The statement said it demonstrated “Israel's premeditated intent to carry out a new and horrific massacre.”
The process of evacuating the dead and injured is underway despite the challenging conditions in the region, it said.
The death toll could increase due to the serious condition of the injured, who are being treated at nearby hospitals, it added.
The Palestinian official news agency WAFA confirmed that dozens of people were killed and injured.
Israel launched its war on Gaza after a Oct. 7 cross-border incursion by the Palestinian group Hamas. It has since killed more than 31,300 Palestinians and pushed the territory to the brink of famine.

Israel has also imposed a crippling blockade on the Palestinian enclave, leaving its population, particularly residents of northern Gaza, on the verge of starvation.
The war has pushed 85% of Gaza’s population into internal displacement amid acute shortages of food, clean water, and medicine, while most of the enclave's infrastructure has been damaged or destroyed, according to the UN.
Israel stands accused of genocide at the International Court of Justice, which in an interim ruling in January ordered Tel Aviv to stop genocidal acts and take measures to guarantee that humanitarian assistance is provided to civilians in Gaza.