Israeli tanks fired into a crowd trying to get aid from trucks in Gaza on Tuesday, killing at least 59 people, according to medics, in one of the bloodiest incidents yet in mounting violence as desperate residents struggle for food.

Video shared on social media showed around a dozen mangled bodies lying in a street in Khan Younis in the southern Gaza Strip. The Israeli military, at war with Hamas-led Palestinian militants in Gaza since October 2023, acknowledged firing in the area and said it was looking into the incident.

Palestinian medics said at least 59 people were killed and 221 wounded in the incident, at least 20 of them in critical condition. Casualties were being rushed into the hospital in civilian cars, rickshaws and donkey carts. It was the worst death toll in a single day since aid resumed in Gaza in May.

Oil prices stabilised Wednesday after surging the previous day on fears of a US intervention in the Israel-Iran conflict sparked by Donald Trump calling for Tehran’s “unconditional surrender”.

The comments sent oil prices spiking more than four percent Tuesday on fears an escalation of the conflict could hammer supplies from the crude-rich region.

But while both main contracts dipped Wednesday, investors remain on edge over any negative developments.

Iran and Israel exchanged missiles for a sixth day, with the US president’s latest comments appearing to dent hopes that the crisis in the Middle East could be calmed.

Israel’s military said Wednesday it struck a Iranian centrifuge production facility and multiple weapons manufacturing sites, in the latest round of strikes between the archfoes.

“More than 50 Israeli Air Force fighter jets… carried out a series of air strikes in the Tehran area over the past few hours,” an Israeli army statement said. “As part of the broad effort to disrupt Iran’s nuclear weapons development program, a centrifuge production facility in Tehran was targeted.”

“During the wave of attacks, several weapons manufacturing sites were struck, including facilities for producing raw materials and components used to assemble surface-to-surface missiles.

Israel stunned and hobbled Iran last week when it pulled off an intelligence and military operation years in the making that struck high-level targets with precision.

Guided by spies and artificial intelligence, the Israeli military unleashed a nighttime fusillade of warplanes and armed drones smuggled into Iran to quickly incapacitate many of its air defenses and missile systems, according to an Associated Press report.

With greater freedom to fly over Iran, Israel bombarded key nuclear sites and killed top generals and scientists. By the time Iran mustered a response hours later, its ability to retaliate — already weakened by past Israeli strikes — was greatly diminished, the report said.

Iran’s Revolutionary Guard Corps said Wednesday that hypersonic missiles were used during the latest attack on Israel, as fighting between the archfoes entered a sixth day.

“The 11th wave of the proud Operation Honest Promise 3 using Fattah-1 missiles” was carried out, the Guards said in a statement carried by state television, claiming that Iranian forces “have gained complete control over the skies of the occupied territories”.

Wall Street stocks fell Tuesday after President Donald Trump hardened his rhetoric on the fighting between Iran and Israel, sparking worries of a broadening conflict. In social media posts, Trump appeared to demand Iran’s “UNCONDITIONAL SURRENDER!” while hinting at a possible US intervention as the fighting moved into its fifth day.

“It’s not going in the right direction,” Art Hogan, chief market strategist of B. Riley Wealth, said of Tuesday’s tone after markets had advanced Monday on hopes the conflict was contained.