Hi Kuba,
Best guess is that the digitizer on your phone screen has failed. Since the digitizer is fused to the OLED display, you'll need to replace the entire screen assembly to fix the problem. iFixit has a guide giving you step by step instructions on how to accomplish that repair yourself.
iPhone XS Screen Replacement - iFixit Repair Guide
You can support iFixit's repair efforts by purchasing the screen from them; the Fix Kit is a great deal for only $4 extra you get all the tools you need to do the job plus the precut adhesive sheet needed to seal the phone back up when you're done. Of course you can save yourself a bunch of money if you go shopping on sites like Amazon, eBay and AliExpress; entirely up to you.
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