Israeli army footage showed tanks rolling through the Rafah crossing complex and the Israeli flag raised on the Gaza side.
Israeli Prime Minister Benjamin Netanyahu said seizing the crossing was a "very significant step" towards its stated aim of destroying Hamas's military capabilities.
Residents reported heavy tank shelling on Tuesday evening in some areas of eastern Rafah.
"They have gone crazy, tanks are firing shells and smoke bombs cover the skies and with smoke over Al-Salam and Jneinah neighborhoods," said Emad Joudat, 55, a Gaza city resident displaced in Rafah.
"I am now seriously thinking of heading north, maybe to the central Gaza area. If they move further into Rafah it will be the mother of massacres," he told Reuters via a chat app.
U.N. and other international aid agencies said the closing of the two crossings into southern Gaza - Rafah and Israeli-controlled Kerem Shalom - had virtually cut the enclave off from outside aid and very few stores were available inside.
Red Crescent sources in Egypt said shipments had completely halted.
As well as a key entry point for aid, the crossing was the only exit point for those needing to leave Gaza for medical treatment that is no longer available in the enclave.
Lama Abu Holi, 8, has been in Al-Aqsa hospital for a month, waiting for a chance to leave for treatment for her injured legs.
"Today my name was at the border, and I should travel to get my legs treated," she said, holding a toy in her hospital bed. "They hurt. I am supposed to have an operation. Because the border crossing is shut today, I could not travel."
https://www.reuters.com/world/middle-east/israeli-military-take-control-vital-rafah-crossing-gaza-into-egypt-2024-05-07/