Palestinians transport the body of a victim from the rubble after Israeli airstrikes in the southern Gaza Strip. AFP

Israeli air and artillery fire pounded the Gaza Strip on Monday, more than nine months into the war between Israel and Palestinian group Hamas as peace hopes faded.

Hamas's armed wing said fighters had fired a missile at two Israeli tanks in the Tal Al Hawa district of Gaza City, in the north.

Artillery fire rained down on Tal Al Hawa and other neighbourhoods of the city, the media correspondents reported, and in central Gaza, eyewitnesses said the Israeli army had shelled areas including the outskirts of Nuseirat refugee camp.

A hospital source reported three dead from a strike on a house in Deir al-Balah city, also in the centre of the coastal territory, after paramedics from the Palestine Red Crescent said they had retrieved the bodies of five people following Israeli air strikes in the nearby Al-Maghazi camp.

In southern Gaza, witnesses reported artillery fire and helicopter strikes east of Khan Yunis city and western areas of Rafah, near the Egyptian border.

Raids

The Israeli military said it was continuing its activity throughout the territory and had conducted raids in Rafah and central Gaza that killed "a number of" fighters, as well as air strikes throughout the strip over the past day.

The war began with Hamas's unprecedented October 7 attack on southern Israel which resulted in the deaths of 1,195 people, mostly civilians, according to an AFP tally based on Israeli figures.

This handout photo shows Israeli tanks and soldiers stationed at a location in Gaza Strip. AFP

The Palestinian group Hamas also seized 251 hostages, 116 of whom are still in Gaza including 42 the Israeli military says are dead.

Israel responded with a military offensive that has killed at least 38,664 people, also mostly civilians, according to data provided by the health ministry in Hamas-run Gaza.

The latest toll on Monday includes 80 new deaths in 24 hours, the ministry said.

A senior Hamas official told AFP on Sunday, citing the movement's political chief Ismail Haniyeh, that the group was suspending participation in indirect talks towards a ceasefire partly because of Israeli "massacres against unarmed civilians".

Hamas was "ready" to return to talks when Israel "demonstrates seriousness" in reaching a deal, the official said.

The comment came after Gaza's health ministry said at least 92 people had been killed and 300 wounded in a strike on Al-Mawasi, an Israeli-designated "safe zone" on the coast.

The Israeli strike targeted the head of Hamas's military wing, Mohammed Deif, and killed a fighter Israel's military called one of Deif's closest associates.

Mass displacement

Last week, US President Joe Biden had suggested a truce deal might be close, saying at a NATO summit that both sides had agreed to a framework he had set out in late May.

Hamas on Monday lashed out at the United States, accusing it of supporting "genocide" through its weapons supplies to Israel.

Palestinians inspect the damage of a destroyed building following an Israeli airstrike on the outskirts of Gaza City. AP

The United States provides Israel with billions of dollars in military aid annually.

"We condemn in the strongest terms the American disdain for the blood of the children and women of our Palestinian people", a statement from the Hamas government media office said.

Talks have been mediated by Qatar and Egypt, with US support, but months of negotiations have failed to bring a breakthrough.

Critics in Israel, including demonstrators who have marched at times by the tens of thousands to demand a hostage-release deal, have accused Prime Minister Benjamin Netanyahu of prolonging the war.

Netanyahu has vowed to destroy Hamas and bring back all hostages from Gaza.

The war has displaced virtually the entire population of the territory, many of whom have sought shelter in schools, six of which have been hit in strikes since July 6.