An Israeli groom and 12 of his wedding guests have been charged with inciting violence and terrorism by celebrating the murder of a Palestinian toddler who was burned to death in an arson attack.

Ali Dawabsheh died alongside his parents after their home in the West Bank village of Duma was firebombed by settlers in July last year. Only Ahmed, Ali’s four-year-old brother, survived with serious burns.

The attack sparked outrage and waves of protests across Israel and the Occupied Palestinian Territories as Israeli forces condemned an “act of Jewish terror” and arrested the perpetrators.

Palestinian baby burned to death in settler attack

But in December, footage emerged of members of a wedding party celebrating the atrocity in Jerusalem.

An amateur video aired on Israeli television showed far-right Jewish attendees dancing with guns, knives and Molotov cocktails, shouting anti-Palestinian chants and stabbing a photo of 18-month-old Ali.

It was broadcast by Channel 10 news, who reported that the couple getting married were “very well known in the radical right” and had friends who knew suspects in the Dawabsheh murders.

Israeli and Palestinian politicians were united in their condemnation, with Prime Minister Benjamin Netanyahu saying “shocking images show the true face of a group that constitutes a danger Israeli society”.

Court officials in Jerusalem said 13 wedding participants, including the bridegroom, were indicted on Wednesday on charges of inciting violence or terrorism.

Thebody of the 18-month-old Ali Saad-Dawabsheh on July 31, 2015 in the Palestinian village of Duma, West Bank (Oren Ziv/Getty Images)

The crimes carry a penalty of up to five years' imprisonment. Pleas have not yet been entered.

A 21-year-old Jewish settler was charged with racially-motivated murder over the arson in January, and a second Jewish defendant, a minor at the time of the incident, was charged as an accessory.

Palestinians have long complained about attacks and harassment by settlers in the West Bank and accused Israel's right-wing government of failing to prevent the attacks or punish the perpetrators.

Mr Netanyahu has pledged to take "firm action against terrorism, no matter who its perpetrators are" as a wave of Palestinian attacks and security crackdowns continues.

Israeli prosecutors ended an investigation into two private security guards who shot two Palestinian siblings dead at a crossing between Jerusalem and the occupied West Bank on Wednesday.

The Israeli–Palestinian conflict intensifies Show all 10 1 /10 The Israeli–Palestinian conflict intensifies The Israeli–Palestinian conflict intensifies Medics evacuate a wounded man from the scene of an attack in Jerusalem. A Palestinian rammed a vehicle into a bus stop then got out and started stabbing people before he was shot dead AP The Israeli–Palestinian conflict intensifies Israeli ZAKA emergency response members carry the body of an Israeli at the scene of a shooting attack in Jerusalem. A pair of Palestinian men boarded a bus in Jerusalem and began shooting and stabbing passengers, while another assailant rammed a car into a bus station before stabbing bystanders, in near-simultaneous attacks that escalated a month long wave of violence AP The Israeli–Palestinian conflict intensifies Youths attend the funeral of Ahmad Sharake who was shot during clashes with Israeli forces in Jelazun refugee camp, near Ramallah, West Bank. Tensions in the area continue to run high following a series of stabbing attacks that have occurred around Israel in clashes between Palestinian youths and Israeli security forces Getty Images The Israeli–Palestinian conflict intensifies Palestinians throw molotov cocktail during clashes with Israeli troops near Ramallah, West Bank. Recent days have seen a series of stabbing attacks in Israel and the West Bank that have wounded several Israelis AP The Israeli–Palestinian conflict intensifies Women cry during the funeral of Palestinian teenager Ahmad Sharaka, 13, who was shot dead by Israeli forces during clashes at a checkpoint near Ramallah, at the family house in the Palestinian West Bank refugee camp of Jalazoun, Ramallah AP The Israeli–Palestinian conflict intensifies A wounded Palestinian boy and his father hold hands at a hospital after their house was brought down by an Israeli air strike in Gaza Reuters The Israeli–Palestinian conflict intensifies Palestinians look on after a protester is shot by Israelis soldiers during clashes at the Howara checkpoint near the West Bank city of Nablus EPA The Israeli–Palestinian conflict intensifies A lawyer wearing his official robes kicks a tear gas canister back toward Israeli soldiers during a demonstration by scores of Palestinian lawyers called for by the Palestinian Bar Association in solidarity with protesters at the Al-Aqsa mosque compound in Jerusalem's Old City, near Ramallah, West Bank AP The Israeli–Palestinian conflict intensifies Undercover Israeli soldiers detain a Palestinian in Ramallah Reuters The Israeli–Palestinian conflict intensifies Palestinian youth burn tyres during clashes with Israeli soldiers close to the Jewish settlement of Bet El, in the West Bank city of Ramallah, after Israel barred Palestinians from Jerusalem's Old City as tensions mounted following attacks that killed two Israelis and wounded a child

The justice ministry said the unnamed guards had acted in self-defence 27 April, as the sister, a mother-of-two was carrying a knife and had been intending to attack them at Qalandia.

But Palestinian witnesses told the AFP news agency that Maram Abu Ismail, 23, and her brother Ibrahim Saleh Taha, 16, had panicked after going the wrong way at the heavily guarded checkpoint.

At least 36 Israelis, two Americans and several other foreign nationals have been killed in Palestinian attacks over the past year, while more than 230 Palestinians have been killed by Israeli security forces.

Officials say the majority were killed while carrying out or attempting stabbings, shootings or car-ramming attacks but others have been shot dead during protests or clashes, with the UN raising concern over the “excessive use of force” by Israeli forces.