The Occupied Territories are parts of Jordan (i.e., the West Bank and East Jerusalem) and Egypt (i.e., Gaza) that were occupied by the Israeli Defense Forces during the 1967 Arab-Israeli War, and are now under the civil authority of the Palestinian Authority subject to Israeli military control. East Jerusalem's status is less clear than that of the West Bank and Gaza. This specific term implies a belief that the Israeli actions are illegal, with which the State of Israel does not agree.
The West Bank and East Jerusalem, but not Gaza, contain Israeli civilians, as well as security forces.