Three hostages killed in Gaza were holding up a white flag when they were mistakenly shot dead by Israeli forces, a military official said on Saturday.

The incident happened in an area of intense combat where Hamas terrorists operate in civilian clothes and use deception tactics, the official added.

A soldier saw the hostages emerging tens of metres from Israeli forces in the area of Shejaiya, the official said.

“They’re all without shirts and they have a stick with a white cloth on it. The soldier feels threatened and opens fire. He declares that they’re terrorists, they [the soldiers] open fire, two are killed immediately,” said the military official.

The third hostage was wounded and retreated into a nearby building where he called for help in Hebrew, the official said.

“Immediately the battalion commander issues a ceasefire order, but again there’s another burst of fire towards the third figure and he also dies,” said the official. “This was against our rules of engagement,” he added.

The three hostages were identified as Yotam Haim, Samer Talalka, and Alon Shamriz, who were among an estimated 240 people taken captive by Hamas during the Oct 7 attacks.

After news broke of their accidental killing on Friday, hundreds of protesters marched in Tel Aviv.

Large crowds called on the government to negotiate over the release of the remaining people being held by Hamas.

“Their time is running out! Bring them home now!” the crowd chanted, while waving flags and placards reading: “Every day, a hostage dies.”

“I am dying of fear. We demand a deal now,” said Merav Svirsky, sister of Hamas-held hostage Itay Svirsky at the protest.

Israel has said it is opening an investigation into the killings and expressed “deep sorrow” for the “disaster”.

Anger has mounted among the hostage families, who have accused the government of prioritising the destruction of Hamas over the return of their loved ones.

However, Axios reported on Saturday morning that David Barnea, Israel’s Mossad spy agency director, is expected to meet Mohammed bin Abdulrahman Al Thani, the Qatari prime minister, in Europe this weekend to discuss resuming negotiations.

If it goes ahead, it would be the first meeting between senior Israeli and Qatari officials since the collapse of the seven-day ceasefire that led to the return of more than 100 hostages.