Israel's security cabinet has labeled the Gaza Strip an "enemy entity", thus giving the opportunity for cuts in fuel and other vital supplies to the territory.

Hamas said that this action was a "declaration of war".

The office of Ehud Olmert, Israel's prime minister, said his security cabinet approved the "enemy entity" classification and there would be "limitations on imports to the Gaza Strip and a reduction in the supply of fuel and electricity"

Tensions have been building up between both sides after Hamas took control of the Gaza Strip in mid-June.

Senior Palestinian negotiator and spokesman for the West Bank-based government Saeb Erekat , said "I believe Gaza and West Bank are still under Israeli occupation. Under no circumstances can Israel view it as an 'enemy entity'. Gaza as not an independent state, Gaza is under occupation."

Al Jazeera