The Israeli Broadcasting Authority, citing a senior Israeli official, reported that the explosion was the result of an attack against senior Hamas officials.
Later, in a statement, the IDF (Israeli military) announced that it had targeted the Hamas leadership in an attack carried out by the Israeli Air Force.
The statement does not explicitly mention Qatar, but comes following reports of large-scale explosions in Doha, where Hamas' top leadership is based.
"The leadership members who were struck have led the activities of the terrorist organization for years and are directly responsible for the October 7 massacre and the outbreak of the war against the State of Israel," the statement said.
The military says it has taken measures to reduce civilian casualties in the attack, including through the use of precision munitions.
The attack comes days after Israeli army chief Eyal Zamir threatened to assassinate Hamas leaders living abroad and hours after Israeli Foreign Minister Gideon Saar said Israel had accepted a US-sponsored ceasefire proposal in Gaza.
Qatar's first reaction
Majed Al Ansari, spokesman for Qatar's Ministry of Foreign Affairs, said in a statement that the country"condemns in the strongest terms" the attack, which he said was directed against residential buildings where several members of Hamas' political bureau lived.
"This criminal attack constitutes a flagrant violation of all international laws and norms and a serious threat to the security and safety of Qatari citizens and residents of Qatar," the statement said.
"In strongly condemning this attack, the State of Qatar affirms that it will not tolerate this reckless behavior by Israel and the continued disruption of regional security, as well as any action that targets its security and sovereignty. The investigation is underway at the highest level, and further details will be announced as soon as they are available."