Soldiers open fire on stone-throwing demonstrators in Gaza and the West Bank, killing two teens and wounding others.
Losing significant funding from its largest donor, the United States, could be "catastrophic" for Palestinians, said a UN agency that provides aid to Palestinian refugees.
A Palestinian teen from the Gaza Strip was killed east of the Burij refugee camp after a live round was sacked into his chest, the Wafa news agency quoted medical sources as saying.
Following the announcement of the new settlements, the Israeli anti-settlement group Peace Now accused the Israeli Government of "trying to destroy the possibility of a two-state solution and the prospect of peace by building more and more in the settlements".
Tensions were already high ahead of Friday's protests after two 16-year-old Palestinians were killed in clashes with the IDF on Thursday.
The Israeli forces justified the killing by accusing Qeeno of being the main instigator of attacks that saw Palestinian youths hurling rocks at the soldiers.
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Locals told Ma'an that clashes erupted at a flying checkpoint set up by Israeli forces west of Iraq Burin, amid a wider crackdown and Israeli closures in the area following a shooting attack earlier in the week that lead to the death of an Israeli settler in the area.
For decades, Israel has been in conflict with the Palestinians, who had been seeking diplomatic recognition for their independent state on the territories of the West Bank, including East Jerusalem, which are partially occupied by Israel, and the Gaza Strip.
The status of Jerusalem is among the most contentious in the Israeli-Palestinian conflict. Israeli jurisdiction and ownership of Jerusalem, however, is not recognised by the global community.
Israel captured eastern Jerusalem - which includes Judaism's holiest sites, the Temple Mount and the Western Wall in the Old City - and the West Bank in the 1967 defensive war, seizing it from Jordanian occupation and reuniting the city.
Palestinian leaders want East Jerusalem as the capital of their future state.
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