Israeli sources confirmed to media that troops shot at the crowd, believing they "posed a threat", in Gaza City's north.
The Palestinian health ministry in Gaza condemned the attack and called it a "massacre" stating the same claimed at least 104 lives and left 760 people wounded.
A witness told AFP that the violence unfolded when thousands of people, desperate for food, rushed towards aid trucks at the city's western Nabulsi roundabout.
The soldiers reportedly fired at the crowd when the people came too close to the tanks.
Gaza continues to face a desperate humanitarian situation nearly five months following the war started by Hamas's unprecedented attack on southern Israel on October 7.