Israel's Defence Minister Ehud Barak has authorised Gaza to be resupplied with fuel and medicine after a review of the humanitarian situation in the Palestinian territory.
The move came as the UN warned that its food aid to about 860,000 people in the Gaza Strip will have to be suspended within days if Israel's blockade continues.
Israel closed Gaza's borders last Thursday in response to rocket attacks by Gaza-based militants.
Gaza's only power plant was shut down last night - reports said the closure was because of a shortage of fuel.
The EU says Israel is 'collectively punishing' the Hamas-run territory.
Israeli foreign ministry spokesman Ary Mekell has denied there was an energy crisis in Gaza.
While Israeli Prime Minister Ehud Olmert said earlier that the blockade will continue, with only the bare minimum of aid provided, as long as Hamas retains control.
He said Israel is targeting members of terrorist organisations.
Mr Olmert said that the Islamist Hamas movement, which seized control of the territory last June, was ‘deliberately intensifying the crisis in the Gaza Strip in order to create pressure from the international community on Israel’.
‘Israel will not allow a humanitarian crisis in Gaza,’ Mr Olmert said. ‘But we will not provide them with luxury products and allow them to live comfortable lives.
Arab league in emergency talks
Meanwhile, Arab League officials gathered today for an emergency meeting to discuss the Israeli blockade.
Permanent delegates to the 22-member body asked the international community to pressure Israel into lifting its lockdown of Gaza.
On Saturday, Arab League chief Amr Mussa warned of a humanitarian crisis in Gaza and said Israeli actions could hamper ongoing peace talks.
He urged the so-called international quartet – the United Nations, European Union, Russia and the United States – to exert pressure on Israel.
