As Israel continues to demand the release of 239 hostages held in Gaza by Hamas, the militant group released a video on Monday claiming to show three of the women it captured on 7 October.

Israeli Prime Minister Benjamin Netanyahu condemned the video as "cruel psychological propaganda" and said their heart is with the women.

Israel-Gaza latest: IDF in 'direct contact' with Hamas

Meanwhile, Israel continues to pound the strip, with residents on Monday reporting dozens of air strikes in the east of Gaza City.

Some also claimed to hear tanks roll in, which Hamas said had pulled back towards the border, while other Gazans said a road by the coast in the west had been hit from the air and sea.

Israeli advances have put their forces on both sides of Gaza City and surrounding areas of the north, in what Mr Netanyahu called a "second stage" in the war.

Islamic Jihad, a militant group fighting alongside Hamas, said in a statement that now is not the time for a truce, adding "our duty today is fight and fight".

Rear Admiral Daniel Hagari, Israel's chief military spokesperson, said Israel Defence Forces (IDF) troops are deployed along the northern border and "prepared for any scenario".

Dozens of militants were killed overnight, Mr Hagari added, but he refused to confirm the location of the ground forces after footage appeared to show tanks advancing on a main road in Gaza.

Later on Monday, Mr Hagari said four Hamas officials had been killed by Israeli troops in the "past few hours".

The fighters also "destroyed terror infrastructure" including anti-tank positions, he added, while the IDF claims soldiers are responding to gunfire at the Lebanese border and targeting the "origin of the shooting".

In other key developments:
• A German-Israeli woman kidnapped from a music festival by Hamas fighters has been found dead, Israel's foreign ministry says;
• A 25-year-old man is in a critical condition after being stabbed in Jerusalem, with the attack understood to have been carried out by a Palestinian man;
• Anti-Israel protesters stormed a runway in Russia, reportedly chanting antisemitic slogans and looking for passengers on a flight from Tel Aviv;
• British citizens trapped in Gaza 'could be classed as hostages', a minister suggests;
• The UK's terror threat level will not be raised at Monday's emergency COBRA meeting, Downing Street has suggested.

Mr Hagari said Israel's "activities and operations will continue and escalate according to the stages of the war".

"This is an expanded ground operation into the strip," he added. "Ground forces, tanks, infantry forces, armoured corp forces are moving towards the terrorists."

Mr Hagari said Israel launched an attack from the air to "target 20 terrorists" and there was also fighting inside the Gaza Strip, with "direct contact between the ground forces and the terrorists".

UN and medical staff warned airstrikes in Gaza are getting closer to hospitals, where thousands are wounded and tens of thousands have sought refuge.

According to UN figures, about 117,000 displaced people are staying in hospitals alongside thousands of patients and staff.

Meanwhile, talks to free the 239 hostages held by Hamas since the group's 7 October attack in Israel have stalled, according to NBC News, Sky's US partner network.

The report refers to a former US official with knowledge of the negotiations, who said the militant group had demanded Israel allow fuel deliveries into Gaza.

Footage shows tank 'blocking key escape road'

As Israel presses ahead, video obtained by the Associated Press showed an Israeli tank and bulldozer in central Gaza, as Sky News' Nicole Johnston also reports.

They appear to be blocking the territory's main north-south highway, which the Israeli military had told Palestinians to use to escape its ground offensive.

Asked if forces were on the road, Mr Hagari said Israel has "expanded" operations but would not comment on specific deployments.

The video shows a car approaching a barrier across the road, before turning around. The tank appears to open fire as it heads away and an explosion sets the car on fire.

The Gaza health ministry later said three people died - and it now reports 8,306 Palestinians have died in total.

More than 1,400 people have died on the Israeli side, according to the country's government, since Hamas's initial attack.

Stabbing in Jerusalem

As the conflict in Gaza continues to cause tension elsewhere, a 25-year-old man was stabbed in Jerusalem on Monday, according to an Israeli volunteer emergency service.

Sky News correspondent Cordelia Lynch, who is in Jerusalem, said a "large crowd" had gathered, and a "number of security forces" arrived.

She understands the injured man was a border police officer and was stabbed by a Palestinian man, who is now dead.

A spokesperson for Ihud Hatzala, a volunteer medical force, said the injured man was provided with first aid.

The spokesperson added: "When we arrived at the scene we encountered a stab wound in his upper body, we gave him first medical aid at the scene and then he was taken in a police ambulance to the Hadassah Hera Tesov Hospital, where his condition at this stage is determined to be critical."