Palestinians in Gaza see the kites and balloons as legitimate resistance against Israel.
The arson attacks have caused hundreds of fires in southern Israel since April and Israeli officials say the practice of setting kites and balloons aflame across the Gaza border started out on a small scale, but was adopted and encouraged by Hamas, an opponent to Israel.
Israel also made a decision to reduce the Gaza fishing zone from six to just three nautical miles.
It appeared to be the first case of Gaza militants using birds to attack Israel and authorities said they were considering filing a complaint - under the appropriate worldwide treaties - about the use of animals for militant activities.
Hamas called Israel's import restrictions on Gaza a "crime against humanity".
Israel pounded Hamas targets on Saturday in its most massive bombardment since the 2014 war, while militants fired dozens of rockets toward Israel that halted daily life in the area.
Kerem Shalom is the only crossing between Gaza and Israel for the transportation of goods.
"Should they continue, these additional restrictions risk triggering a dramatic deterioration in an already fragile situation and desperate humanitarian conditions, particularly for the health sector", McGoldrick warned.
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Following a barrage of almost 200 rockets and mortars fired into Israel on Saturday, an errant rocket fell short and knocked out electrical lines carrying power into Gaza, Israel's Coordinator of Government Activities in the Territories (COGAT) reported Monday.
Today the Israeli military said it was conducting strikes against Hamas "in response to the terror acts instigated during the violent riots that took place along the security fence" the day before.
"I heard it being said that Israel has agreed to a ceasefire that would allow the continuation of terrorism by incendiary kites and balloons; this is incorrect".
Reiterating a sentiment he had expressed on Sunday, Israeli Prime Minister Benjamin Netanyahu told reporters in the southern Israeli city of Sderot, "To us, there is no such thing as a ceasefire that excludes the incendiary kites and balloons".
Rights group have criticized the new law, saying it is Israel's latest attempt to stifle dissent by delegitimizing rights groups and NGOs.
Israel imposes an air and naval blockade on the Gaza Strip. Over 130 Palestinians have been killed by Israeli fire since the protests began on March 30.
The weekend's violence came after months of near-weekly border demonstrations aimed in part to protest the Israeli-Egyptian blockade of Gaza.
Israel says its use of live fire is necessary to defend its borders and stop infiltrations.