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PM Rishi Sunak says that the UK judges the blast at Gaza's Al-Ahli hospital was likely caused by "a missile, or part of one" fired from "within Gaza".
Mr Sunak told parliament the conclusion was based on "deep knowledge and analysis of our intelligence".
Media outlets, including the BBC, reported an initial Hamas statement blaming Israel for Tuesday's explosion.
Israel denied this shortly afterwards, saying that it was caused by a misfiring rocket from within Gaza.
Mr Sunak said that "misreporting" of the blast by media had had a "negative effect in the region".
"We need to learn the lessons and ensure that in future there is no rush to judgement," he said.
Regional leaders cancelled a meeting with US President Joe Biden in the aftermath of the explosion.
Mr Biden has also backed the Israeli assessment of the incident.