Dozens of people were killed near two aid-distribution stations in the Gaza Strip, the latest setback to a new humanitarian relief operation backed by Israel and the U.S. as a way of sidelining Hamas.

Medics and witnesses claimed Israeli forces had fired on Palestinians massed near the stations in southern Rafah and the Netzarim Corridor in central Gaza on Sunday, accusations that were categorically denied by the Israel Defense Forces.

“Findings from an initial inquiry indicate that the IDF did not fire at civilians while they were near or within the humanitarian aid distribution site and that reports to this effect are false,” it said in a statement.

The Gaza Humanitarian Fund earlier said food handouts at its stations proceeded without incident and would be expanded to reach more Palestinians brought to the brink of a famine by an Israeli aid blockade that was imposed after a truce with Hamas expired in March.

A U.S. proposal for a fresh ceasefire that would increase aid to Gaza, free hostages held by Hamas and lead to end-of-war talks is in limbo. Hamas, which wants a guaranteed Israeli troop withdrawal, issued a counter-offer on Saturday that was rejected by the U.S. envoy Steve Witkoff. Israel, which wants Hamas disarmed and disbanded, accepted his proposal.

Qatar and Egypt are working to resolve the disagreements in a bid to reach a ceasefire in Gaza based on Witkoff’s proposal, according to a joint statement shared by the Qatari foreign ministry on Sunday. The two mediators would like to see the parties agree to a 60-day truce that would lead to permanent ceasefire, end the humanitarian crisis in the war-hit enclave and pave the way for the implementation of the reconstruction plan endorsed by Arab countries in March.

Medics and witnesses said Palestinian crowds headed to Israeli-guarded buffer zones around the Rafah and Netzarim distribution stations were fired on by tanks or drones. At least 31 people were killed and scores more wounded, the Associated Press cited the Hamas-run health ministry as saying.

The Red Cross said it received a mass casualty influx of 179 cases, including women and children, early Sunday morning at its field hospital in Rafah. Most of the casualties suffered gunshot or shrapnel wounds. Twenty-one were declared dead upon arrival, the nonprofit said in a statement on X, adding that all the patients said they had been trying to reach an aid distribution site.

Some Palestinians blamed a lack of clarity about when and how to safely approach the GHF sites from active combat zones.

“You start walking. If the tank fires at you, it means you crossed the boundary line,” said Mohannad Qeshta, a witness.

The GHF, registered in Switzerland, was established with Israeli backing to find a way to to distribute aid that couldn’t be taken by Hamas. Israel says that’s essential to prevent the group, which is on terrorism blacklists in the West, from hoarding or reselling the aid.

The nonprofit, which began distribution last week, has got off to a rocky start amid delays and scenes of chaos as Palestinians crowded aid stations. Top organizer Jake Wood also resigned, citing misgivings about the plan.

Most relief groups have refused to work with the nonprofit, saying it’s politicizing the distribution of aid by vetting Palestinians. They also claim the amount being given out is insufficient after almost 20 months of war.

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(With assistance from Sherif Tarek.)

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