Israel on Wednesday branded the Gaza Strip a "hostile entity," clearing the way for it to shut off basic supplies to the Hamas-run territory in revenge for rocket fire, a senior official told AFP.

"Following extensive legal consulations, Israel has decided to declare Gaza as a hostile entity, with all the international implications," the official told AFP following a meeting of Israel`s powerful security cabinet.

"This move will prepare the groundwork for sanctions against Gaza, such as the interruption of gas, electricity and water supply, which will occur in a gradual process," the official said on condition of anonymity.

The official said the cabinet did not take any immediate decisions to turn off the taps to the territory -- home to 1.5 million Palestinians -- but that the move "clears the way for the government to do so."
sections: Politics, World News