A spokesman for Palestinian leader Mahmoud Abbas has describedthe closure of a disputed Jerusalem holy site as a "declaration of war".
Nabil Abu Rudeina said the Palestinian Authority would take legal action over the move, which came amid tension over the shooting of a Jewish activist.
Rabbi Yehuda Glick was seriously hurt after a meeting where he urged greater Jewish access to the site.
Israeli police later killed a Palestinian suspected of shooting him.
The man, named as 32-year-old Moataz Hejazi, was shot after opening fire when police surrounded his home.
Rabbi Glick is a well-known US-born campaigner for greater Jewish rights to pray at the site, which is known to Jews as the Temple Mount, and to Muslims as Haram al-Sharif.
It is the holiest site in Judaism, and also contains the al-Aqsa Mosque - the third holiest site in Islam.
Palestinians hold the Israeli government responsible for a "dangerous act", Mr Abbas was quoted as saying by Mr Rudeina, in remarks carried by AFP news agency.
"This dangerous Israeli escalation is a declaration of war on the Palestinian people and its sacred places and on the Arab and Islamic nation," Mr Rudeina added.
"The state of Palestine will take all legal measures to hold Israel accountable and to stop these ongoing attacks."
The shooting of Mr Glick is the latest in a series of incidents which have led to an escalation of tensions in Jerusalem.
Some districts of East Jerusalem have seen nightly clashes between Palestinians and Israeli security forces since the conflict in Gaza.
Police said the suspect, Moataz Hejazi, had served time in jail in Israel and was released in 2012, adding that he belonged to the Islamic Jihad militant group.
The police anti-terrorist unit along with the Israeli internal security service Shin Bet had received information that Mr Glick's attacker was located in the Abu Tor neighbourhood, Israeli officials said.
Police say they were fired at after surrounding the house and shot back, hitting the suspect.
Rabbi Glick has had surgery for gunshot wounds to his chest and abdomen.
He had just attended a conference where delegates discussed Jewish claims to the compound, one of the most contentious areas of the Arab-Israeli conflict.
Israel argues that it protects freedom of worship at the site, but Palestinians claim it is unilaterally taking steps to allow larger numbers of Jewish visitors.
The site is administered by an Islamic body called the Waqf, while Israeli police are in charge of security.
Jews are allowed on to the compound but are forbidden from praying or performing religious rites there under Israeli law.