The leader of Hamas has called for a new uprising against Israel after US President Donald Trump's decision to recognise Jerusalem as the capital of Israel.

"We should call for and we should work on launching an intifada in the face of the Zionist enemy," Ismail Haniyeh said in a speech from Gaza on Thursday.

"This will not stop until the liberation of Jerusalem and the West Bank,” he said, calling on ordinary civilians to rise up.

Schools and shops across the Palestinian Territories were shuttered on Thursday in protest against the US' move.

Protests erupt after Trump recognises Jerusalem as Israel's capital Show all 22 1 /22 Protests erupt after Trump recognises Jerusalem as Israel's capital Protests erupt after Trump recognises Jerusalem as Israel's capital Supporters of Difa-e-Pakistan Council a coalition of right wing Islamic parties, burn an effigy of US President Donald Trump, during a protest in Quetta, Pakistan EPA Protests erupt after Trump recognises Jerusalem as Israel's capital Israeli police scuffle with a Palestinian protester outside Damascus Gate in Jerusalem's Old City Getty Protests erupt after Trump recognises Jerusalem as Israel's capital Palestinian protesters burn pictures of Donald Trump and Benjamin Netanyahu following Trump's decision to recognise Jerusalem as the capital of Israel, in Gaza City AFP/Getty Images Protests erupt after Trump recognises Jerusalem as Israel's capital Israeli forces disperse Palestinian protesters outside Damascus Gate in Jerusalem's Old City on 7 December 2017 AFP/Getty Images Protests erupt after Trump recognises Jerusalem as Israel's capital Supporters of the Difa-e-Pakistan Council (DPC), an Islamic organization, chant slogans as they burn Israeli and US flags during a protest against Donald Trump in Peshawar REUTERS Protests erupt after Trump recognises Jerusalem as Israel's capital Palestinians paint an 'X' over the face of a picture of US president Donald J. Trump which was painted on the Israeli separation wall in Bethlehem EPA Protests erupt after Trump recognises Jerusalem as Israel's capital Palestinian protestors burn the Israeli flag and a poster of US President Donald Trump in Gaza City AFP/Getty Images Protests erupt after Trump recognises Jerusalem as Israel's capital Supporters of a Pakistani religious party rally against Donald Trump in Lahore AP Protests erupt after Trump recognises Jerusalem as Israel's capital Palestinian protesters burn the US and Israeli flags in Gaza City AFP/Getty Images Protests erupt after Trump recognises Jerusalem as Israel's capital A poster depicting U.S. President Donald Trump is burnt during a protest against Trump's decision to recognize Jerusalem as the capital of Israel, in the West Bank city of Ramallah REUTERS Protests erupt after Trump recognises Jerusalem as Israel's capital Israeli forces detain a Palestinian protester during clashes that followed protests against US President Donald Trump recognising Jerusalem as the capital of Israel, in Hebron AFP/Getty Images Protests erupt after Trump recognises Jerusalem as Israel's capital Palestinian protesters burn an effigy of U.S. President Donald Trump AP Protests erupt after Trump recognises Jerusalem as Israel's capital Palestinian protesters shout slogans against Donald Trump EPA Protests erupt after Trump recognises Jerusalem as Israel's capital A Palestinian protester wears a Guy Fawkes mask used by the anonymous movement during clashes with Israeli troops in Hebron AFP/Getty Images Protests erupt after Trump recognises Jerusalem as Israel's capital Palestinian demonstrators clash with Isralei troops during protests AFP/Getty Images Protests erupt after Trump recognises Jerusalem as Israel's capital Supporters of a Pakistani religious party chant anti-American slogans during a rally in Islamabad, Pakistan AP Protests erupt after Trump recognises Jerusalem as Israel's capital Pakistanis burn a representation of the U.S. flag during a protest rally in Hyderabad AP Protests erupt after Trump recognises Jerusalem as Israel's capital Young Palestinian women look on as smoke billows from burning tyres as fellow Palestinian demonstrators clash with Isralei troops AFP/Getty Protests erupt after Trump recognises Jerusalem as Israel's capital Protesters burn a picture of U.S. President Donald Trump at a protest in Islamabad REUTERS Protests erupt after Trump recognises Jerusalem as Israel's capital Protestors shouts slogans against US President Donald Trump as they hold Palestinian and Turkish flags during a protest near the US Embassy in Ankara, Turkey EPA Protests erupt after Trump recognises Jerusalem as Israel's capital Palestinian protestors put their feet over a picture of US president Donald Trump during a protest in the West Bank City of Nablus EPA Protests erupt after Trump recognises Jerusalem as Israel's capital Pakistani protesters burn tires at an anti-Donald Trump rally in Multan AP

"We have given instruction to all Hamas members and to all its wings to be fully ready for any new instructions or orders that may be given to confront this strategic danger that threatens Jerusalem and threatens Palestine," he said.

"United Jerusalem is Arab and Muslim, and it is the capital of the state of Palestine, all of Palestine," Mr Haniyeh added, referring to territory including Israel as well as the Hamas-controlled Gaza Strip and the Israeli-occupied West Bank.

Mr Haniyeh, who was elected as Hamas' leader earlier this year, also called on Palestinian Authority President Mahmoud Abbas to withdraw from the peace process.

He reiterated the militant group's call for a "day of rage" across the Palestinian Territories on Friday.

While Hamas made no mention of utilising its own arsenal to attack Israel, fears of violence in the volatile region are growing. More protests and strikes are expected on Friday - and the Muslim holy day is often a test for whether such demonstrations turn violent.

Theresa May says she will talk to Donald Trump about Jerusalem

The Israeli military said it would deploy several battalions to the West Bank ahead of Friday. Other troops have been put on alert to address "possible developments".

A spokesperson for Hamas said on Wednesday night that Mr Trump had "opened the gates of hell" by taking the unprecedented step of calling the contested city Israeli.

Israel annexed east Jerusalem in the 1967 Six Day war, a move that was never internationally recognised. Israelis claim the entire city as their capital - as do Palestinians.

Control of it remains one of the core stumbling blocks to an Israeli-Palestinian peace deal.

Like many presidential hopefuls before him, on the campaign trail Mr Trump promised to recognised Jerusalem as Israel's capital and to relocate the US embassy there from Tel Aviv.

Over the last year, the new administration has delayed a decision on the issue.

Mr Trump's Wednesday announcement, however, upends decades of US policy: the current US position is to recognise the status of Jerusalem in a final peace agreement.

The move has been almost universally condemned by the international community - including a rare rebuke from key US ally Saudi Arabia.

Observers worry such a symbolic move could spark renewed violence in Israel and fan the flames of terrorism across the Muslim world, and risks showing the US is no longer interested in pursuing a two-state solution.

While Israeli Prime Minister Benjamin Netanyahu praised the decision as an "historic landmark", Palestinian Authority President Mahmoud Abbas said on Wednesday that the move signals a "withdrawal" from the peace process.