Guy Gilboa-Dalal and Alon Ohel are two of 48 people still being held by Hamas in the Gaza Strip, with 20 thought to be still alive.
Palestinian militants took 251 hostages into the enclave after its cross-border attack on southern Israeli communities in 2023 that killed about 1200 people, triggering the war.
More than 64,000 Palestinians have since been killed in the Gaza Strip, local health authorities say, with much of the enclave left in ruins and its residents facing a humanitarian crisis.
The video was edited and featured an exhausted-looking Gilboa-Dalal speaking for about three-and-a-half minutes.
He is seen in a car for some of the video dated August 28.
Reuters could not independently determine when the video was recorded.
He says that he is being held in Gaza City along with several other hostages and that he is afraid of being killed by Israel's offensive on the city.
Israeli Prime Minister Benjamin Netanyahu ordered the military last month to capture the strip's largest urban centre, Gaza City, attacking what the government calls the last bastion of Hamas.
An Israeli military spokesman said on Thursday that it controls about 40 per cent of the city, where about one million people lived prior to the war.
The military controls about 75 per cent of the Gaza Strip.
The Israeli military bombed a high-rise building in the city's west on Friday that it said was being used by Hamas for surveillance and that civilians had been warned beforehand.
Palestinians said the strike targeted the Mushtaha tower in Rimal, an upscale neighbourhood before the war.
The military did not provide any evidence that militants were using the building.
Photos of the building taken before Friday's strike showed that its roof was already heavily damaged from earlier raids.
The building's management issued a statement saying that it was being used for Palestinians displaced by the war, denying that it had been used for anything other than civilian purposes.
Footage showed the moment the building was struck, collapsing moments after impact and sending thick clouds of smoke billowing over nearby tent camps sheltering Palestinians.
Across the strip, 30 Palestinians were killed by the military on Friday, including 20 in Gaza City, Gaza's health ministry said.
The military has been carrying out heavy strikes on the city for weeks, advancing through outer suburbs, and this week forces were within a few kilometres of the city centre.
Ismail, a father of two from Gaza City's Sheikh Radwan neighbourhood, described heavy fire and powerful explosions carried out by the Israeli military.
He told Reuters that his family feared they would not be able to return if they fled.
"We pray for a ceasefire," he said by phone.
In the video, Gilboa-Dalal, 24, appears to be in the back seat of a car that is being driven around.
As the car passes by buildings, he identifies one as belonging to the Red Cross.
Hamas has refused to allow the Red Cross to see the hostages.
At one point, Ohel, 24, is also seen.
Gilboa-Dalal was seen in a video in February being forced to watch other hostages being freed under a temporary ceasefire.
Hostages who were filmed in similar videos and have since been freed have said their captors had dictated to them what to say.
US-based Human Rights Watch has condemned Hamas and another militant groups in the Gaza Strip for releasing videos of hostages, calling it inhumane treatment that amounts to a war crime.
Israeli officials have described the videos as psychological warfare.
Netanyahu on Friday said it was "cruel propaganda".
with AP
