Various Palestinian factions, including militant organisation Hamas, called for a day of rage on Friday against the US and Israeli occupation.
Israel Defense Forces spokesman Jonathan Conricus said the tunnel, which originated in the city of Khan Younis, had penetrated several hundred meters inside Israeli territory, finishing a kilometer away from the nearest village in Israel.
An Israeli security guard was seriously injured in a stabbing attack in West Jerusalem on Sunday, according to Israeli police.
France has been a supporter of the Palestinian cause.
Netanyahu insisted that what U.S. President Donald Trump did was "put facts squarely on the table". It annexed the area in 1980 and sees it as its exclusive domain. "Let him present it, so that this intervention can be wiped out by the restart of the peace process", he said.
The land on which the city stands on has changed hands many times over the course of human history, with various Semitic tribes, Egyptians, Romans, as well as the Ottoman Empire being among its rulers.
Today's protest, organized by the Islamist Prosperous Justice Party, was the second since Trump's decision on Thursday.
Her remarks come after Netanyahu criticised Europe for "hypocrisy" for condemning Trump's announcement but not rockets fired into Israel from Gaza.
"The most important thing about peace is first of all to recognize that the other side has a right to exist", he said. Simply satisfying a campaign promise does not explain a whole lot. That's a gesture for peace.
The incident on a small army base just outside of the Jilazun refugee camp.
"In the name of Fateh, I say that we will not welcome Trump's deputy in the Palestinian Territories".
Police in the Swedish city of Gothenburg arrested three people for allegedly throwing firebombs at a synagogue. Israel formally passed a law declaring Jerusalem as its capital in 1980.
About 60% of Jerusalem's population is Jewish (mostly in West) and 40% are Muslims and Christians (mostly In East). "One of the manifestations of this refusal is the mere refusal to sit down with Israel".
In Beirut, meanwhile, Lebanese security forces fired tear gas and water canons at protesters, some of them waving Palestinian flags, near the US embassy.
Despite President Trump's Jerusalem declaration, the U.S. State Department still won't recognize Jerusalem, Israel, as a place that actually exists.
But it remains unclear whether Erdogan will succeed in bringing all OIC leaders to Istanbul for Wednesday's summit and also to agree on a joint course of action.
Tens of thousands have also protested in Muslim and Arab countries, including Jordan, Turkey, Pakistan and Malaysia. But there is nothing new in these agitations.
What is the reaction to the position?
Rep. Ron DeSantis (R-Fla.) told the Free Beacon the Constitution gives the president the power to make foreign policy, not the State Department.