Meanwhile, hundreds of Palestinians at the Damascus Gate celebrated rockets fired from the Gaza Strip towards West Jerusalem.
The Israeli police began evacuating thousands of settlers from Al-Buraq Square following the landing of these rockets.
Al-Buraq's security inspector also cancelled the Israeli flags march organized annually by extremist Israeli settlers to celebrate the occupation of East Jerusalem in 1967.
In the Sheikh Jarrah neighbourhood, a large crowd of settlers attacked three Palestinians causing moderate and severe injuries.
According to the Palestine Red Crescent, at least 305 people were injured on Monday as Israeli forces fired rubber-coated bullets, tear gas, and stun grenades at Palestinians who were on guard to prevent possible raids by extremist Jews.
Tensions have run high in the Sheikh Jarrah area since last week as Israeli settlers swarmed in after an Israeli court ordered the eviction of Palestinian families.
Palestinians protesting in solidarity with the residents of Sheikh Jarrah have been targeted by Israeli forces.
Israel occupied East Jerusalem during the 1967 Arab-Israeli war and annexed the entire city in 1980-a move that has never been recognized by the international community.