This is going to be short - but I'll hopefully add more info later as it becomes available.
First off - if you need more info I'm going to direct you to this diary by "Tom J".
He wrote up a very good preview of the mission heading to gaza with supplies.
Here is what happened while you were sleeping (and while I was working).
Around midnight pacific time the boat reported seeing an israeli naval vessel moving toward it. israel said it would not stop the boat until it crossed the blockade barrier.
Around 2:30 this morning pacific time the boat crossed the barrier (according to Israel), and it was stopped, without violence.
Personally the outcome of the latest attempt to break the blockade was unsurprising. Israel says it will stop any unauthorized vessel from going into gaza. It did it again this morning. From israel's point of view, if you let one boat through, they'd have to let others. Sort of the "if you give a mouse a cookie" argument.
From the people on the boat's perspective, I can't imagine they expected anything different. They were most likely warned, they saw the navy coming for hours, in the diary I linked to earlier the organizers seemed intelligent and informed about what was going on.
From a PR point of view both sides seemed to get what they wanted. israel wanted this to end peacefully, and according to the AP, it did. The organizers wanted more attention on the blockade, and the fact AP was giving reports overnight about it means they succeeded as well.
Anyway, I know previous diaries on the subject have gotten a lot of interest, so I thought people here would enjoy the update. I tried doing it without taking one side or the other.
UPDATE -
The passengers on the Irene, including a former Israeli fighter
pilot, had said they wanted to show that not all Jews support the
Israeli blockade. They acknowledged ahead of time that it was
unlikely they would reach Gaza and said they would not resist.
The military announced "the boarding of the yacht was without
incident and no violence of any kind was used by neither the
passengers onboard nor the Israel naval forces."
It said the Irene was being taken to the Israeli port of Ashdod.
The boat's cargo, including medicines, toys and water purifiers,
are expected to be transferred into Gaza.
Miri Weingarten, a spokeswoman for the activists who was in
touch with them when they were halted, said one person was
handcuffed as the naval forces boarded the boat. She said a lawyer
for the activists hoped to meet them in Ashdod, and that the group
had also asked that a doctor be allowed access to examine an
82-year-old activist on board.