Benjamin Netanyahu has ordered that fuel transfers to Gaza be cut in half in response to a rocket attack against Israel.
The Israeli prime minister announced on Monday that the measure would take effect immediately and until further notice.
The response follows airstrikes the military carried out overnight in the Gaza Strip after three rockets were launched from the territory into southern Israel.
The military said the airstrikes included one on the office of a Hamas commander in the northern Gaza Strip. There were no reports of casualties.
Air raid sirens warning of an incoming attack wailed late on Sunday during an outdoor music festival in the Israeli border town of Sderot, sending panicked revellers fleeing for cover.
The military said two rockets were intercepted by its missile defence system.C