Israel's Defence Minister Yoav Gallant on Monday ordered a "complete siege" of the Hamas-ruled Gaza Strip, two days after shock attacks by the militant group killed more than 700 Israelis, including soldiers.

Gallant is currently conducting an operational assessment at IDF (Israel Defence Forces) Southern Command, together with the Head of Southern Command Maj-Gen Yaron Finkelman.

"I have given an order -- Gaza will be under complete siege. There will be no electricity, food or fuel [delivered to Gaza]. We are fighting barbaric [terrorists] and will respond accordingly," Gallant said.

Gaza depends on Israel largely for its basic supplies and such a decision will have far-reaching consequences for 2.3 million people living in the densely populated area.

While Hamas activists were seen celebrating on the streets of the coastal territory on Saturday, wary commoners were seen looking to stock up on basic needs speculating about the imminent harsh attack.

The streets of Gaza for the last two days have looked completely deserted, much like most Israeli towns in the south.