More than 90,000 thousand Palestinians have worshipped at the Al-Aqsa Mosque in Jerusalem for Eid al-Fitr prayers.
The Mufti of Jerusalem criticized U.S. President Donald Trump's peace plan in his sermon there.
Sheikh Muhammad Hussein said Friday, "this is an unfair plan that aims at the liquidation of the Palestinian cause."
Trump has promised the "ultimate deal" between Israelis and Palestinians and is expected to unveil the plan soon.
Trump's relocation of the U.S. embassy from Tel Aviv to Jerusalem this year angered Palestinians who view the move as siding with Israel on the most sensitive issue in the conflict. Palestinians say it disqualifies the U.S. as Mideast peace broker.
Israel captured east Jerusalem, sacred home to Jews, Muslims and Christians, in the 1967 war from Jordan.
