Palestinian rocket attacks on Israel have increased since Hamas took control of the Gaza Strip in June.
Israel began reducing fuel supplies to Gaza last month in response to the ongoing rocket fire from Palestinian fighters, and plans to begin scaling back electricity from Sunday.
Israel's supreme court ruled on Friday that the Israeli government can continue cutting fuel supplies to residents of Gaza but must postpone the planned electricity cut.
The ruling was in response to a legal challenge from a coalition of human rights groups that claims the policy constitutes collective punishment.
Gaza is dependent on Israel for all of its fuel and about half its electricity.
David Baker, an Israeli government spokesman, defended the government policy on Friday, calling it "a non-lethal means for Israel to send a message to those responsible for the rocket fire from Gaza".
Hamas took control of Gaza in June after factional fighting against Fatah and its leader Mahmoud Abbas, the Palestinian president.
Israel responded by largely closing off the territory and its 1.5 million people from the outside world.