The government also said it would ban Jewish visitors from entering Jerusalem’s Al-Aqsa compound from Wednesday until the end of Ramadan.
Home of the Al-Aqsa Mosque, the site is sacred in both Judaism and Islam, and is the centerpiece of Ramadan celebrations.
Jews, who know the site as the Temple Mount, are allowed to visit the site, but are not allowed to pray there.
The move comes after Israeli Prime Minister Benjamin Netanyahu promised on Monday to restore security “on all fronts”.
The latest escalation in unrest began last Wednesday with an Israeli police raid on the Al-Aqsa Mosque, followed by rockets fired from Gaza, Lebanon and Syria, and a car collision in Tel Aviv that killed an Italian tourist .
The body of Alessandro Parini arrived back in Rome on Tuesday after the 36-year-old was killed when a car plowed into pedestrians on the city’s beach on Friday evening.