Hundreds of Palestinians have attended the funeral procession of three people killed by Israeli fighter jets in an overnight airstrike.

Hundreds of Palestinians have attended the funeral procession of three people killed by Israeli fighter jets in an overnight airstrike.

The three lost their lives while driving in a car from the town of Khan Yunis to the Deir al Balah refugee camp early Saturday.

Medical sources say a fourth Palestinian has been injured in the incident.

The Israeli strike in southern Gaza created fears of an escalation into an all-out confrontation.

Hamas has identified the victims as members of its Ezzedine al-Qassam Brigades.

The Brigades described the airstrike as a "serious escalation" and warned that Israel "will bear all the consequences."

Hamas spokesman Fawzi Barhoum described the airstrike as "a crime and a systematic continuation of murder, criminality and state terrorism."

On Tuesday, multiple attacks left at least 10 people dead, including 4 children in Gaza.