The Israeli army said one of its soldiers was hit by a rock while conducting the arrest and responded by shooting.
Israel says many protest participants were Hamas members and militants trying to breach the border and launch attacks. The protest came the day after the USA opened its embassy in Jerusalem.
Firefighters were working Friday morning to control a fire near Kibbutz Mefalsim, close to Israel's border with Gaza. In recent weeks, Israel has struggled with a new phenomenon of flaming kites flown over the border into Israel.
The mourners chanted slogans calling for the resistance to "avenge the blood of martyr Najjar" and reasserted that they will continue to participate in the "return marches" on the security fence separating the Gaza Strip and the rest of Palestine.
Attacks have petered off in recent months as the Palestinian focus has shifted toward protests at the Gaza border, where Israeli troops have killed over 115 Palestinians wounded almost 3,700 more during near-weekly protests, according to Palestinian health officials.
According to the Nature and Parks Authority, approximately 7,000 acres of forestland have been burned, including a third of the Carmia Nature Reserve.
Iranians have begun anti-Israel "Jerusalem Day" rallies across the country to condemn Israeli occupation of Palestinian territories.
Chanting "Death to Israel", demonstrators protested Israel's presence in Jerusalem, the city where Muslims believe Islam's Prophet Muhammad began his journey to heaven.
The Shin Bet says a resident of a Palestinian refugee camp in east Jerusalem is among those in custody for his involvement in the plot, orchestrated from Syria, to harm Netanyahu and Jerusalem Mayor Nir Barkat.
Iran does not recognize Israel and supports anti-Israeli terror groups such as Hamas, which rules Gaza and openly calls for Israel's destruction; Lebanon's Hezbollah, as well as militia forces that have carried out attacks against Israel from southern Syria. Iran has marked al-Quds Day since the start of its 1979 Islamic revolution.
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