Israeli strikes on Rafah have killed at least 16 Palestinians, first responders said on Tuesday, as residents reported an escalation of fighting in the southern Gaza city.

An Israeli incursion launched in early May has caused nearly one million to flee from Rafah, most of whom have already been displaced in the war between Israel and Hamas, and who are now seeking refuge in squalid tent camps and war-ravaged areas.

The latest strikes occurred in the same area where Israel targeted what it said was a Hamas compound on Sunday night.

That strike ignited a fire in a camp for displaced Palestinians and killed at least 45 people, according to local health officials, sparking worldwide outrage.

Israeli prime minister Binyamin Netanyahu said there was a “tragic mishap” on Sunday and the military said it was investigating.

Strikes overnight killed a total of 16 people in the Tel al-Sultan neighbourhood in north-west Rafah, according to the Palestinian Civil Defence and the Palestinian Red Crescent.

Israel says it is carrying out limited operations in eastern Rafah along the Gaza-Egypt border. But residents reported heavy bombardment overnight in western parts of Rafah as well.

“It was a night of horror,” said Abdel-Rahman Abu Ismail, a Palestinian from Gaza City who has been sheltering in Tel al-Sultan since December.

He said he heard “constant sounds” of explosions overnight and into Tuesday morning, with fighter jets and drones flying over the area.

He said it reminded him of the Israeli invasion of his neighbourhood, Shijaiyah in Gaza City, where Israel launched a heavy bombing campaign before sending in ground forces in late 2023.

“We saw this before,” he said.

Sayed al-Masri, a Rafah resident, said many families have been forced to flee their homes and shelters, with most heading for the crowded area of Mawasi, where giant tent camps have been set up on a barren coastline, or to Khan Younis, a southern city that suffered heavy damage during months of fighting.

“The situation is worsening” in Rafah, Mr al-Masri said.

The war began when Hamas and other militants burst into southern Israel in a surprise attack on October 7th, killing some 1,200 civilians and abducting around 250 others. More than 100 were released during a ceasefire in November in exchange for Palestinians imprisoned by Israel.

Israel responded to the October 7th attack with a massive air, land and sea offensive that has killed more than 36,000 Palestinians, according to the Gaza Health Ministry.

Around 80 per cent of Gaza’s population of 2.3 million has been displaced and parts of the territory are experiencing famine.

Mr Netanyahu says Israel must destroy what he says are Hamas’s last remaining battalions in Rafah. The US and other close allies have warned Israel against carrying out a full-fledged ground offensive in the city, saying it would cause a humanitarian catastrophe.