Israel has begun cutting electrical power to the Gaza Strip as part of a plan to sever economic ties with the territory, an Israeli defense official said.

Tel Aviv on Thursday cut five per cent of electricity on one of 10 high-power lines that supply the Gaza Strip.

It is the latest step Israel has taken to increase pressure on Gaza after it cut fuel supply to the area last month.

The reduction will be less than 1% of the 124 megawatts Israel supplies for the coastal territory, Shlomo Dror, a spokesperson for Ehud Barak, the Israeli defense minister, said.

"This is a signal to the Palestinians that we see their conduct in Gaza and that we want to continue the disengagement process. I hope they will focus their effort on getting new sources of energy instead of developing...rockets," Dror said.

Israel was accused of imposing a blockade on Gaza that amounted to "collective punishment" of the population after fuel cuts last month led to blackouts in Gaza.

Israel is "trying to reduce the Gaza Strip's dependence on Israel in many fields," said Matan Vilnai, Israel's deputy defense minister.

Gaza blockade

Apart from Israel's 124 megawatts, a local power station in Gaza City produces 64 megawatts and Egypt supplies 17 megawatts, Israel's defense ministry said.

Tom Casey, a spokesman for the US state department, said he was not aware of the move.

"We understand Israel's right to defend itself, but we do not think that actions should be taken that would infringe upon or worsen the humanitarian situation for the civilian population in Gaza," Casey said.

Israel has stepped up military action against Hamas since the group claimed responsibility for a Palestinian suicide bombing in Israel on Monday.

PHOTO CAPTION

Funeral of Hamas fighter Hamouda Sharafa Tufha, killed in an Israeli raid