"Israel does not know what it wants to do there", she continued. "We will dictate the rules of the game and no one else".
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Prime Minister Benjamin Netanyahu visited a southern Israeli town bordering Gaza on Tuesday that was pummeled with rockets from the strip over the weekend and told community leaders there that Israel is engaged in a "lengthy battle".
The goods crossing, known as Kerem Shalom, will remain open only for food and medicine on a case-by-case basis.
"Closing Gaza's major crossing for movement of goods, the main lifeline for nearly two million people, half of whom are children, constitutes an illegal and immoral act of collective punishment", they said.
Lieberman also said Israel was tightening its naval blockade to limit Palestinians from sailing beyond three nautical miles off Gaza's coast.
Fifteen people have been wounded across Gaza, the ministry said.
This comes after Israel and Hamas brokered a ceasefire late Saturday, after the Israeli military launched the heaviest bombing assault on Gaza since the 2014 war, killing two children, and Hamas fired a series of rockets toward Israel, wounding four Israelis. Palestinians, who seek the territory, along with the Gaza Strip for a future state, exercise limited self-rule there.
"The situation in Gaza is extremely precarious".
Liberman's office had announced on Monday that between Tuesday and Sunday, no fuel will enter Gaza through Kerem Shalom.
Hamas has been diverting resources intended for civilian development in Gaza to enhance its military capabilities, including a growing drone program.
The UN said that as a result, more than 220 health, water and sanitation facilities depend "on donor-funded emergency fuel to power back-up generators to deliver essential services". Now the arsonists have taken their attacks a step further by strapping a flammable device to a bird of prey.
Last week, Israel closed the crossing to commercial trade, a move Hamas denounced as a "crime against humanity". It warned that the decision would have "serious consequences".
Israel's military responded by hitting dozens of Hamas targets.
It accuses Hamas of seeking to use the protests as cover for attacks against Israel.
The restrictions, he said, are an expression of "political idiocy" and won't affect the Palestinians' struggle and resolve to pursue freedom.
Also Saturday, Nikolai Mladinov, the United Nations Special Coordinator for the Middle East Peace Process, reportedly held talks with several Israeli and Egyptian officials in an attempt to restore calm to the region.
Kerem Shalom is the only cargo crossing between Gaza and Israel. Egypt also tightly controls the Rafah border crossing into the Sinai.