The Israelis are backed by the Geneva Conventions. If enemy combatants are indistinguishable from civilians, then military forces are entitled to engage them.
This entitlement extends to engaging enemy forces who are deliberately hiding among civilians
Protocol IV, Article 51: “The presence or movements of the civilian population or individual civilians shall not be used to render certain points or areas immune from military operations, in particular in attempts to shield military objectives from attacks or to shield, favor or impede military operations."