Security was stepped up surrounding the funeral, with an Israeli police statement saying that "thousands of police were deployed this morning in east Jerusalem in order to maintain security" around the funeral.

Officials also barred men under 50 from entering the al-Aqsa mosque complex - Jerusalem's most important Muslim site and a potential flashpoint.

In an apparent revenge attack by Jewish extremists, Palestinian teenager Mohammed Abu Khdeir was allegedly abducted and killed, fanning the flames of unrest. Palestinian youths clashed with Israeli police throughout much of Wednesday, following the discovery of Khdeir's charred body.

The murder, suspected by many to have been carried out by Jewish extremists, came after the murder of three young Israelis. The militant Palestinian group Hamas has neither confirmed nor denied involvement with the death of the teenagers.

A major search operation by Israeli troops in the West Bank led to the deaths of at least five Palestinians and the detention of hundreds - stirring resentment. In the aftermath of the search, a series of rockets were fired from Palestinian-controlled Gaza into Israel.

Tentative truce offer

Israel, which hit back with air strikes and sent troops near to the Gaza border, has offered Hamas a ceasefire, conditional on a cessation of the rocket attacks.

"We are prepared for two possibilities in the south," Prime Minister Benjamin Netanyahu was quoted as saying by as telling a July 4 reception at the US ambassador's residence.

"That the fire at our communities will stop and our activities will also stop, or that the fire at our residents of the south will continue and then the reinforced troops which are in place will act forcefully."

The BBC has said that Hamas has now offered to stop its rocket attacks if Israel stops air raids. Israel said three rockets were launched at it on Friday, with one of them intercepted by its Iron Dome interceptor. The other two caused no damage, and there were no Israeli counter-attacks.

rc/kms (AFP, AP, dpa, Reuters)