President Mahmoud Abbas has given himself virtual veto power over any American initiative in the Gaza Strip.
The shootings occur as thousands of Palestinians gather along the frontier in response to calls by Hamas.
During a conference with reporters, the president says that finding peace is "more difficult because it's a real estate deal."
In an interview with an Arabic-language newspaper, President Trump's son-in-law and senior adviser appeals directly to the Palestinians and criticizes their leader.
In a jarring contrast, Israeli forces attack Palestinians at the Gaza border, while a few miles away Israel and the U.S. celebrate the new embassy in contested Jerusalem.
Combat battalions, special units, intelligence forces and snipers are sent to the Gaza border, where Palestinians plan a mass protest Monday against the embassy move to Jerusalem.
One protester is killed and 146 are wounded in the seventh weekly action aimed at shaking off a decade-old blockade of the Palestinian territory. More protests are expected.
Hundreds of Palestinians, including a journalist, are hurt in the third large-scale protest in as many consecutive Fridays along the volatile border.
Crowds of flag-waving protesters march toward the border fence with Israel, some throwing stones and drawing Israeli fire.
The incident throws an already troubled reconciliation process between the Fatah party and Hamas into deeper turmoil.