Israel's customs authority said on Thursday it found 16 tons of material used for rocket production during an inspection of a shipment from Turkey headed to Gaza, which the ruling Hamas group dismissed as a fabrication.
The customs authority said it had stopped for inspection in July two containers carrying 54 tons of what were supposed to be bags of plaster.
A lab test confirmed some of the bags contained ammonium chloride, the authority added, which it said was used by groups in Gaza "to produce rockets that are eventually launched towards Israel".
In Gaza, Hamas spokesman Hazem Qassem described the report as "lies".
"The occupation is forging lies as a pretext to tighten the blockade on Gaza," Qassem told Reuters.
Gaza is home to some 2.3 million Palestinians who live in one of the world's most densely populated areas. Since 2007, Israel, together with Egypt, has maintained an illegal siege that has devastated the coastal enclave's economy and has led to an almost constant humanitarian crisis.
Israel and Hamas have fought several wars since 2008, with thousands of Palestinian civilians killed by Israeli air strikes on the tiny strip.
With uncertainty growing over who will succeed 87-year-old Palestinian President Mahmoud Abbas, Hamas has stepped up efforts to attract support in the illegally occupied West Bank, a geographically separate territory which is the basis for a contiguous independent Palestinian state under international law.
Earlier this month, Israel froze the export of commercial goods from Gaza for several days due to what it said was an attempt to smuggle explosives. Palestinians said the brief ban hit thousands of families.
(Reuters)