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It was not immediately clear who carried out the shooting or what was the motive.
The deployments include F-16, F-22 and F-35 fighter aircraft.
Israel's national security minister, Itamar Ben-Gvir, has already resigned over the ceasefire agreement.
Small groups of Jewish visitors under heavy police guard walked through the mosque compound, known in Judaism as Temple Mount, as thousands of worshippers gathered for the Passover's special "Priestly Blessing" at the Western Wall below.
At one point, charged down by officers, the group carrying her coffin backed against a wall and almost dropped the casket.
Hotel occupancy rates in Bethlehem are expected to exceed 95 per cent by the end of December, the city's hoteliers' association said.
Trump called for a review of US assistance to the Palestinians earlier this year to ensure that the funds were being spent in accordance with national interests and were providing value to taxpayers.
Netanyahu pledged this move last month in appreciation of Trump's recognition of Israel's claim of sovereignty over part of the strategic plateau.
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