The Israeli military said on Monday it was suspending for a day a major drill in order to focus efforts on preparing for a possible escalation of violence as tensions simmer with Palestinians in Jerusalem.
Israel's armed forces began on Sunday their biggest exercise in 30 years, codenamed "Chariots of Fire".
But following a situational assessment, Chief of Staff Lieutenant-General Aviv Kohavi decided to suspend the exercise for the coming day and has instructed forces "to focus all efforts on preparations and readiness for escalation scenarios", a military statement said.
In Gaza, a spokesman for the Hamas, said the leadership of a joint command of armed movements in the Palestinian enclave had given Israel "an ultimatum until 6 p.m. (1500 GMT)" to withdraw its security forces from Jerusalem's al-Aqsa mosque compound and the city's Sheikh Jarrah neighbourhood.
Israeli police used excessive force against Palestinian worshippers at al-Aqsa earlier in the day, and several Palestinian families face eviction from homes in Sheikh Jarrah seized by Jewish settlers.
The Hamas spokesman did not say what action the armed groups would take if Israel did not meet the demand.
Israel has also been beefing up forces in the occupied West Bank and around the Gaza Strip.