By Nidal al-Mughrabi and Hussam al-Masri

CAIRO/GAZA (Reuters) - Israel stepped up air and ground attacks on Hamas in Gaza, killing at least 52 people according to Palestinian medics, on the first anniversary of a war that has left most of the territory in ruins and shattered the lives of its people.

For its part on Monday, Hamas said it struck Israel's commercial capital Tel Aviv with a missile salvo, setting off sirens in central Israel. Two people were lightly injured, according to the Israeli ambulance service.

The rocket volley signalled Hamas' enduring ability to hit back despite a protracted Israeli military campaign that has seriously degraded its combat capacities, a year after the shock cross-border Hamas incursion into Israel that kindled the war.

Hamas' smaller ally Islamic Jihad said it hit Sderot, Nir Am and other Israeli towns near Gaza with rockets. The Israeli military said it intercepted five rockets fired from Gaza.

Hamas-led militants stormed through Israeli towns and kibbutz villages near the border on Oct. 7, 2023, killing 1,200 people and taking about 250 as hostages, according to Israeli tallies.

Israel's subsequent offensive in Gaza has killed nearly 42,000 Palestinians, according to the enclave's health ministry, displaced nearly all its 2.3 million people - many of them multiple times - and wrought a humanitarian crisis with hunger widespread and healthcare and critical infrastructure breaking down.

Israel says militants fight from the cover of built-up residential areas in the densely populated territory, including schools and hospitals. Hamas denies this.

On Monday, Israeli tanks advanced into Jabalia, the largest of Gaza Strip's eight historic urban refugee camps, after encircling it, residents said. Soon after the rocket volley, the Israeli military expanded evacuation orders in Jabalia to cover areas in the northern towns of Beit Hanoun and Beit Lahiya.

Residents said Israeli forces pounded Jabalia from the air and the ground, and medics said several Palestinians had been killed, with rescuers unable to reach some of the victims.

ISRAEL TARGETS HOSPITAL COMPOUND

The Israeli military said it killed dozens of militants and dismantled military infrastructure in Jabalia, saying the operation would continue to prevent Hamas from regrouping.

In the central city of Deir Al-Balah, where a million displaced people are sheltering, an Israeli air strike hit tents inside Al-Aqsa Hospital, wounding 11 people, Palestinian medics said. The Israeli military said it struck at Hamas militants operating from a command centre embedded inside the hospital.

The Israeli army later ordered residents in some eastern neighbourhoods of Khan Younis in southern Gaza to again leave their homes, and many families started doing so, loading belongings on donkey carts and rickshaws.

Israelis marked the first anniversary of the Oct. 7 Hamas attack, which has given rise to a multi-front conflict across the Middle East as Israel sharply escalates its campaign against the Iranian-backed militant movement Hezbollah in Lebanon.

U.S.-backed Arab mediators Qatar and Egypt have been unable so far to broker a Gaza ceasefire that could also help defuse the Lebanon hostilities and see the release of hostages held in Gaza as well as many Palestinians jailed by Israel.

Israel and Hamas have traded blame for the failure so far to reach an agreement, with each accusing the other of adding conditions that are impossible to meet.

Hamas wants a deal that ends the war and gets Israeli forces out of Gaza, while Israeli Prime Minister Benjamin Netanyahu has vowed the war can end only with the eradication of Hamas.

In Gaza on Monday, uprooted Palestinian civilians expressed a desperate desire to go back to pre-war lives.

"Before Oct. 7, one had dreams. As a father, I have six children, my biggest burden was how to provide them with homes ‮and‬ get them married. But after Oct. 7, this came to nothing. After 58 years of work for me, same as my father - all of it went to dust and rocks," said Abu Hassan Shaheen.

Khaled Meshaal, head of Hamas' political office in exile, urged Arab and Muslim countries on Monday to launch "new fronts of resistance (against Israel) for the sake of freedom and dignity".

(Reporting and writing by Nidal al-Mughrabi with additional reporting by Hussam al-Masri; editing by Mark Heinrich)