New Delhi, Sept. 4 -- As artillery and bombs pound around Gaza's largest city and Israel promises a punishing new offensive, Palestinians in the city are paralyzed with fear - unsure where to go, when to leave and if they will ever return.

Israel has declared Gaza City, in the north of the territory, to be a combat zone while the military moves forward with plans to overtake it in a campaign to push Hamas into submission. Parts of the city are already considered "red zones," where Palestinians have been ordered to evacuate ahead of expected heavy fighting.

That has left residents on edge, including many who returned after fleeing the city in the initial stages of the Israel-Hamas war. With Israeli bulldozers razing the ground in occupie...