Israeli police said they killed three Palestinians involved in the attack.
IS issued a statement Saturday taking responsibility for the stabbing and shooting attacks Friday evening.
A statement by Fatah carried on the official Palestinian news agency Wafa condemned the "killing" of the three Palestinians, without mentioning the circumstances leading up to their deaths.
Nearly immediately, Hamas rejected the Islamic State claim and said one of the attackers belonged to Hamas, and two others to the Popular Front for the Liberation of Palestine, both domestic Palestinian groups.
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Footage shows the acrobat hooking her feet over the circle before hanging upside down with her arms stretched toward the water. She signaled multiple times during the stunt to her husband to bring the aircraft higher, he said after the performance.
Hearing reports on a police radio of gunfire at an East Jerusalem holy site several blocks away from the Old City, a group of Israeli border police near the Old City's Damascus gate was preparing to respond when an assailant began stabbing Staff Sgt. Maj.
Earlier, at his weekly Cabinet meeting, Netanyahu lashed out at Palestinian leader Mahmoud Abbas for not condemning the attack.
"The commando operation in Jerusalem is renewed proof that the Palestinian people are continuing their revolution against the usurping occupation and that their intifada (uprising) is ongoing until they get full freedom", Qasem said.
The BBC apologized Sunday for a biased headline about Friday's terror attack in Yerushalayim, following a strong protest from the Israeli Foreign Ministry.
7 dead, heavy damage to US Navy ship in collision
He also praised their colleagues for saving the USS Fitzgerald from further damage and taking it back to port. Navy has identified the seven sailors killed Saturday in a ship collision, and one of them is a Texas native.
On Tuesday, US Secretary of State Rex Tillerson said the Palestinian Authority had agreed to halt payments to the families of slain attackers, including suicide bombers.
"I call on the countries of the world to condemn both the murder and those who praise it, and demand the immediate cessation of Palestinian Authority payments to the families of terrorists, something that only encourages terror", Netanyahu also said Sunday. In that period, some 250 Palestinians were killed by Israeli fire. The attackers were identified by Israeli security services as residents of the West Bank, at least two of them teenagers from a village near the city of Ramallah.
An Israeli policewoman was critically injured in a stabbing attack in Jerusalem's Old City.
Israel captured the territory with its key holy sites from Jordan in the 1967 war. Two people were injured in the attack, according to The Times of Israel.
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In North America and Europe, the Switch version of Dragon Ball Xenoverse 2 is due out this fall. Dragon Ball Xenoverse 2 is now available for PlayStation 4, Xbox One, and PC.
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