The restrictions on movement and goods in Gaza imposed by Israel date to the early 1990s. After Hamas took over in 2007, Israel significantly intensified existing movement restrictions and imposed a complete blockade on the movement of goods and people in and out of the Gaza Strip. In the same year, Egypt closed the Rafah border crossing. The blockade's stated aims are to prevent the smuggling of weapons into Gaza and exert economic pressure on Hamas. While the blockade's legality has not been adjudicated in court, human rights groups believe it would be deemed illegal and that it is a form of collective punishment, as it restricts the flow of essential goods, contributes to economic hardship, and limits Gazans' freedom of movement. The land, sea, and air blockade isolated Gaza from the rest of the occupied Palestinian territory and the world. The blockade and its effects have led to the territory being called an "open-air prison".

Exit and entry into Gaza by sea or air is prohibited. There are only three crossings in and out of Gaza, two of them controlled by Israel and one by Egypt. Israel heavily regulates Palestinians' movement through Erez, with applications considered only for a small number of laborers (less than 5% of the number considered in 2000) and for limited medical and humanitarian reasons. Israel's military cooperation with Egypt and its control of the population registry (through which it controls who can obtain the necessary travel documents) gives it influence over movement through Rafah. Imports are heavily restricted, with "dual use" items permitted only as part of donor projects. This includes construction material and computer equipment. Exports are also heavily restricted, with the main impediment to economic development in Gaza being Israel's ban on virtually all exports from the Strip.

Israel blockaded the Gaza Strip at various levels of intensity in 2005–2006. Israeli-imposed closures date to 1991. In 2007, after Hamas seized control of the Gaza Strip, Israel imposed an indefinite blockade of Gaza that remains in place, on the grounds that Fatah and Palestinian Authority forces had fled the Strip and were no longer able to provide security on the Palestinian side. Israel has said the blockade is necessary to protect itself from Palestinian political violence and rocket attacks, and to prevent dual use goods from entering Gaza.

Israel has been accused of violating or failing to fulfill specific obligations it has under various ceasefire agreements to alleviate or lift the blockade. "Crossings were repeatedly shut and buffer zones were reinstated. Imports declined, exports were blocked, and fewer Gazans were given exit permits to Israel and the West Bank." Human rights groups, international community representatives, and legal professionals have decried the blockade as a form of collective punishment in contravention of international law, specifically the Fourth Geneva Convention. Rights groups have held Israel mainly responsible as the occupying power.

Israeli imposed closure on the movement of goods and people to and from Gaza dates back to 1991 when Israel cancelled the general exit permit for Palestinians in the occupied territories. This policy was initially temporary, but developed into a permanent administrative measure in March 1993 after heightened levels of violence by Palestinians inside Israel. Since then, the closure has become an institutionalized system in Gaza (and the West Bank), and has varied in intensity but never been completely lifted. As the closure was coming into place, academics and diplomats were already describing it as a form of collective punishment, a trend that continues in more recent times. For example, between 1993 and 1996, total closure was imposed on the Gaza Strip for a cumulative 342 days. During periods of total closure, Israel enforced a complete ban on any movement of people or goods between Gaza and Israel, the West Bank and foreign markets. The economic impact of these closures during 1996 alone was estimated by the World Bank as amounting to losses of almost 40% of Gaza's GNP. In 1994, Israel built the Gaza–Israel barrier as a security measure, despite this, Israeli security establishment has described the closure as having limited value against extremist attacks. Since then, there are four border crossings between Israel and the Gaza Strip through the barrier: the Kerem Shalom, Karni, Erez, and Sufa crossings. All goods bound for Gaza as well as exports passing through Israel must use one of these crossings, and undergo security inspection before being permitted to enter or leave Gaza.

In 2005, Israel withdrew its settlers and forces from the Gaza Strip, redeploying its military along the border. Following Hamas' electoral victory and subsequent military confrontation with opposing party Fatah which led to Hamas taking control over all of Gaza in 2007, Israel further tightened restrictions in an attempt to exert economic pressure on Hamas. With this new tightening of restrictions, all trade was ceased and the entrance of goods was limited to a "humanitarian minimum", allowing only those good which are "essential to the survival of the civilian population". Israeli security officials have described the ban on exports as "a political decision to separate Gaza from the West Bank" further describing it as a matter of "political-security" and a form of "economic warfare".

Additionally, starting in 2009, Egypt built an underground Egypt–Gaza barrier along the Egypt–Gaza border. The stated aim was to block smuggling tunnels. The Rafah Border Crossing is the only lawful crossing point between Egypt and Gaza, and was manned by PA security forces and the European Union Border Assistance Mission Rafah. All humanitarian and other supplies passing through Israel or Egypt must pass through these crossings after security inspection.

Until 2013, there were hundreds of smuggling tunnels dug under the Egypt-Gaza border to smuggle goods, including fuel, into Gaza to bypass the blockade.