( BBC ) - The Israeli government has declared the Gaza Strip a "hostile entity" in response to the continued rocket attacks by Palestinian militants there.
Israeli officials told the BBC fuel and electricity supplies could be targeted, but not water, food or medicine.
The militant group, Hamas, which controls Gaza, said such a move would be considered a declaration of war.
In Jerusalem, US Secretary of State Condoleezza Rice also said the US considered Hamas a "hostile entity".
But she added that the US "would not abandon the innocent Palestinians" of Gaza.
Ms Rice arrived in Jerusalem on Wednesday for talks about re-starting the Middle East peace process.
Israeli public pressure for retaliation has grown since a rocket fired from Gaza hit an army base last Tuesday, injuring 69 troops.
Palestinian militant groups say the rocket fire is a response to Israeli military action in Gaza and the West Bank.