Egyptian security forces set up checkpoints on the main road from the Gaza border to Cairo today to prevent Palestinians travelling to the capital.
Identity checks were being carried out at several checkpoints on the road from El-Arish, 45 kilometres from the border town of Rafah where militants yesterday blew up the frontier barrier.
Small groups of Palestinians could be seen standing by the side of the road at the checkpoints after they were ordered out of pick-up trucks, buses and taxis taking them towards the Egyptian capital.
The Palestinians were later allowed to return to El-Arish or Rafah.
The United Nations said today that at least 700,000 Gazans have flooded over the border into Egypt over the past two days, nearly half the territory's population of 1.5 million.
Palestinians poured out of Gaza into Egypt for a second day to stock up on supplies.
The area where several border walls stood in the divided town of Rafah has now taken on the feel of a busy bazaar, as crowds take advantage of a rare chance to leave Gaza unhindered.
The exodus comes a week after Israel imposed a full-scale blockade on Gaza in response to persistent rocket and mortar fire from the Hamas-ruled territory.
Although Israel eased the lockdown on Tuesday amid mounting fears of a humanitarian crisis, Prime Minister Ehud Olmert has vowed to keep up the pressure on Gaza.
Over the past 10 days, Israeli army raids in Gaza have killed more than 40 people, while militants have wounded 10 Israelis in mortar attacks.
Israel has progressively tightened restrictions on movement in and out of Gaza since June 2006, when militants from the territory seized an Israeli soldier in a deadly cross-border raid.
Since then the Rafah border crossing, Gaza's only exit that bypasses Israel, has been closed almost continuously.
After Hamas seized control of the territory a year later, routing forces loyal to Palestinian president Mahmoud Abbas in a week of deadly clashes, Israel sealed Gaza to all but humanitarian aid and basic supplies.
However last week even this was suspended, as Israeli Defence Minister Ehud Barak ordered Gaza be completely locked down in response to persistent rocket and mortar fire.
Amid mounting international criticism of the move and fears of a humanitarian crisis in the territory of 1.5 million inhabitants, Israel eased the blockade on Tuesday, allowing in limited fuel and aid supplies.
