(CBS/AP) Israel lowered a road barrier sealing the Gaza Strip to Israeli civilians at midnight Sunday — signaling the start of a historic withdrawal that will end its 38-year occupation, redraw borders and reshape prospects for Mideast peace.

The action made it illegal for Israelis to live in Gaza. Soldiers lowered a red road barrier at the Kissufim Crossing between Israel and Gaza, with a sign on the barrier reading: “Stop, entry into the Gaza Strip and presence there is prohibited by law.”

With about 200 people looking on, the barrier was raised and lowered several times, apparently because of technical problems. Soldiers secured it with a wire to keep it shut.

Two large Israeli flags waved beside the barrier. As it went down, a traffic light changed from green to red and three vans carrying settlers and their belongings drove out of Gaza, never to return.

“The Gaza Strip has been closed today based on the decision of the Israeli government and today another phase begins,” said Brig. Gen. Guy Tsur, a senior commander.

The withdrawal, marking the first time Israel gives up settled land claimed by the Palestinians for their future state, comes after months of political wrangling and mass protests. On Sunday, Israeli troops took up positions to launch the evacuation.

Early Monday, troops were to present each settler family with an eviction notice, but the procedure quickly hit a snag. The military canceled trips to five settlements where residents threatened to block the entrances. Army spokeswoman Maj. Sharon Feingold said the army would "respect the wishes" of the settlers and send the notices by mail.

Israel's army chief appealed to troops to show restraint in removing thousands of Jewish settlers from their homes amid concerns that resistance could turn violent after thousands of anti-pullout activists slipped into the territory.

CBS News Correspondent David Hawkins reports that thousands of Israelis are digging in to defy the government's order to evacuate. Some settlers are so desperate to stay, they've offered to live under Palestinian rule as Palestinian citizens -- but the idea was rejected by Israel, Hawkins reports.

The presence of a few thousand Israelis in Gaza, among 1.3 million Palestinians, has become a security burden, said Vice Premier Ehud Olmert. “The state of Israel does not want to be in the Gaza Strip and does not need to be in the Gaza Strip,” he told Israel TV's Channel One.

CBS News Correspondent Teri Okita reports that in the hours leading up to the closure, Palestinian security forces were on their highest alert, warning demonstrators to stop taunting Jewish settlers and trying to prevent militant attacks — something that Israel warned would bring harsh retaliation.

Officers planted Palestinian flags and pitched tents while some chanted in praise of their late leader, Yasser Arafat. Hundreds of supporters of the militant Islamic Jihad group celebrated in Gaza City, with gunmen firing in the air, and teens setting off fire crackers and distributing sweets. The violent Hamas group organized special midnight prayers of thanks at Gaza mosques.

Palestinian residents watched settlers packing up. “They are actually leaving. Who would have ever thought?” said Palestinian farmer Ziyad Satari, 40, standing on the roof of his three-story home in the Palestinian town of Khan Younis, which overlooks the Morag settlement. Many Palestinians have expressed doubt that the withdrawal will take place.

Palestinian Authority leader Mahmoud Abbas offered the Israelis reassurance.

“We tell the Israeli people, `You have chosen the right path,”' he told Israel TV's Channel 10. “This is the right path. Don't listen to the voices of the extremists who want a continuation of the occupation. I don't want — and I will not accept — any clashes with the army or the settlers.”

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