Five people have been arrested after about 300 high school and university students skipped class to rally against the war in Gaza by stopping traffic in Melbourne’s CBD.

A tense stand-off took place between the group and police outside Flinders Street Station after the protesters sat in the middle of the busy intersection at Flinders and Swanston streets about 3pm.

Police said one male was moved on for breaching the peace and five protesters were arrested for obstructing the roadway.

They are expected to be charged on summons.

The protest, which was organised by Students for Palestine and the National Union of Students, began about 2pm outside the State Library.

The crowd of several hundred people then marched to Flinders Street Station.

The protesters were demanding an end to Australian military trade with Israel and for universities to end research and investments in the defence sector.

“Our politicians continue to enable Israel’s crimes in Gaza,” National Union of Students Education Office James McVicar said in a statement.

“They are sending critical aircraft components that allow Israel to rain terror from the sky. We are taking matters into our own hands on August 7.”

Tram services were halted around Flinders Street Station but have since resumed, with Flinders Street back up and running.