Israel yesterday dropped its long-standing restrictions on allowing consumer goods into the Gaza Strip but retained tight limits on desperately needed construction materials.

The move redefines the rules of its heavily criticised Gaza embargo on the eve of the Israeli Prime Minister's trip to the White House.

The new rules, which come in response to an international outcry following a deadly Israeli raid on a blockade-busting flotilla, should bring some relief to Gaza's 1.5 million people.

The decision ends the use of a narrow and often arbitrary list of permitted items. In a boost to the moribund Gaza economy, officials also said raw materials would soon be allowed to flow to Gaza's shuttered factories.

But prospects for rebuilding the damage from a punishing Israeli military offensive last year remain uncertain. Israeli officials said construction materials like iron and steel would be allowed to enter only under Israeli supervision for use in projects overseen by the United Nations or other international bodies.

Israel has been under intense international pressure to loosen its three-year embargo on Gaza since Israeli commandos killed nine Turkish activists in a May 31 raid on a flotilla carrying international activists trying to breach the blockade.

President Barack Obama, who is to meet Israeli Prime Minister Benjamin Netanyahu today, has said the embargo is unsustainable and has called for it to be significantly eased. Other world leaders have demanded the blockade be lifted entirely.

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