The restrictions will take effect on Friday, when the Jewish New Year holidays begin in Israel, and will remain in place for three weeks.
In Israel, with a population of nine million, more than 153,000 people have been confirmed infected with the new coronavirus, of whom 1,108 have died, according to data released by Jones Hopkins University.
More than 3,000 new cases a day have recently been registered in Israel, but on Sunday Netanyahu said the number of new cases of Covid-19 had reached 4,000 in 24 hours.
The restrictions announced by the prime minister are the strictest since the quarantine regime, which ran from late March to early May.
From Friday, no more than ten people can gather indoors, but no more than 20 people can gather outdoors.
Schools and shopping centers will be closed and residents will have to stay within a 500-meter radius around their homes. The exception is going to work.
NGOs and companies will be able to continue working, but will not be allowed to accept clients.
However, supermarkets and pharmacies will continue to be allowed to receive customers.
Netanyahu acknowledged that the new restrictions would cause inconvenience to many people, especially during the holidays, when families used to get together.
Restrictions on indoor gatherings will also affect prayer in synagogues.
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