Israel will allow more goods and equipment to enter Gaza as of Thursday for civilian and international projects.
In a statement, the Israeli army said after evaluating the security situation, Israel took economic measures in the Gaza strip to improve the humanitarian conditions.
The announcement came after hundreds of Palestinians rallied near the Israeli border on Wednesday, demanding that Israel lift its crushing blockade.
The statement said the easing of restrictions includes importing goods and materials for international organizations' projects in Gaza, allowing entry of new vehicles into Gaza, and allowing the gold trade between Gaza and the West Bank. The Gaza businessmen will also get additional 1,000 exit permits.
The Israeli army said the easing of restrictions is conditional on security and stability.
During the Israeli offensive on Gaza in May, Israel imposed severe restrictions on importing goods to Gaza, especially the construction materials, causing an additional economic crisis in the blockaded Gaza.
While Israel insists on the release of its missing soldiers in return for the reconstruction of Gaza, the Hamas group, which rules Gaza since 2007, says the issue of the soldiers is linked to a prisoners' swap.