The statement urged the Israeli authorities to honor their responsibilities under worldwide law by providing the necessary protection for Palestinian civilians and respecting their right to perform their religious rituals.
Last week, the court said it would hear an appeal by the Palestinian families against their eviction from the Sheikh Jarrah neighborhood in East Jerusalem, in the latest development in a decades-long legal case.
According to the Red Crescent, a total of more than 300 Palestinians were wounded on Friday and Saturday nights, some hit by rubber bullets and stun grenades. The compound is the emotional epicenter of the conflict and has been center stage for Israel-Palestinian violence in the past.
Prime Minister Benjamin Netanyahu on Sunday defended Israel's response to the protests and rioting in east Jerusalem.
Palestinian protesters run from stun grenades fired by Israeli security forces outside the Damascus Gate in Jerusalem's Old City on Saturday.
If Lapid is unsuccessful and all other options fail, the country will face another election this fall, the fifth in just over two years. Police said dozens of protesters threw stones at officers there on Saturday.
That apparently did little to allay concern in Europe and among regional powers like Jordan and United Arab Emirates, which condemned Israel's conduct around East Jerusalem.
Israeli police again faced off against mostly young Palestinians at several locations in east Jerusalem late on Sunday.
The UN Security Council will discuss the issue later on Monday.
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Ambassadors at the WTO's General Council have been debating the idea, first raised by India and South Africa in October.
A pro-settler organization called Nahalat Shimon is using a 1970 law to argue that the owners of the land before 1948 were Jewish families, and so the current Palestinian landowners should be evicted and their properties given to Israeli Jews. "Every day there are troubles", said Mahmoud al-Marbua, 27, speaking near the Old City's Damascus Gate.
A lower court had found in favor of Jewish settlers' claim to the land on which the Palestinians' homes are located, a decision seen by Palestinians as a bid by Israel to drive them from contested Jerusalem.
Dome of the Rock, at the Al-Aqsa Mosque compound in Jerusalem's Old City.
Mohammad, a shopkeeper selling incense and prayer robes in the Old City, said Israeli police told him he must shut his doors Monday afternoon, when Israeli Jews plan to march with Israeli flags to mark Jerusalem's "reunification".
Palestinian president Mahmud Abbas voiced "full support for our heroes in Al-Aqsa".
"Regrettably, the PA and Palestinian terror groups are presenting a real-estate dispute between private parties, as a nationalistic cause, in order to incite violence in Jerusalem", the ministry said.
Gaza militants fired at least one rocket into Israel which landed in an open area, the military said.
The protest was organised by the pro-government NGO called IHH which oversaw a flotilla of ships that tried to break Israel's blockade of the Gaza Strip in 2010.
"We call upon Israeli authorities to exercise restraint and to avoid measures that would further escalate the situation during this period of Muslim Holy Days".