Israel's security cabinet declared the Hamas-ruled Gaza Strip an "enemy entity" on Wednesday, local daily Ha'aretz reported on its website.
The cabinet made the decision following a legal examination by the Foreign Ministry regarding how to define the Strip in order to allow Israel to impose sanctions under international law, Ha'aretz said.
The move enables Israel to impose economic sanctions on the coastal enclave as a response to the ongoing rocket attacks against southern Israeli communities.
According to the report, the ministers unanimously approved a number of sanctions against the Gaza Strip, including reducing the fuel supply up to a bare minimum, allowing in only enough fuel to power generators at Gaza hospitals.
Meanwhile, Gaza crossings will only be opened in order to allow in essential food and medical supplies to the Strip.
The ministers decided, however, not to disrupt Gaza's water supply.
The crude rockets have killed 12 people in southern Israel in the past seven years, injured dozens more and badly disrupted daily life in the region.
Last week, a Qassam rocket hit an Israeli military base near the Gaza Strip, wounding over 60 soldiers.
The attack then sparked calls for the government to take harsh response against the Strip, which is taken over by the Palestinian Hamas movement in June.
Gaza's population, largely impoverished, is almost entirely dependent on Israel for the supply of electricity, water and fuel, and a cutoff would deepen their hardship.
Since the Hamas takeover, Israel has closed almost all the crossings with Gaza, allowing in only humanitarian aid.
Source: Xinhua
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