The Israel Defence Forces said they had targeted two senior Hamas leaders at a compound but would review reports fire had spread to shelters, harming civilians.
Prime Minister Mr Netanyahu told his parliament that Israel was urgently investigating the attack it carried out the night before. Amid international condemnation for the devastating strike on the tented refugee camp, he said: "Despite our utmost efforts not to harm innocent civilians, last night, there was a tragic mistake.
"We are investigating the incident and will obtain a conclusion because this is our policy." Israel hit back hard after Sunday's rocket attack by Hamas on Tel Aviv, with rapid revenge strikes killing at least 45 Palestinians in a Rafah refugee camp including young children and injuring dozens more.
In addition to Rafah, targets in the centre of the war-torn strip were also hit by Israeli forces.
The swift and heavy retaliation saw large explosions followed by fires in Rafah - the southern city where more than one million Palestinian refugees are living.
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Heat is on after not so mighty Quins are swept aside
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VAN GRAAN EYES IRISH SHOWDOWN
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Right-on thinking's a spiteful new form of class division
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Inking seems too mainstream today
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