The scope of the attack at the Old City's Damascus Gate marks an escalation in violence in the terror wave in the capital, police say.
Al-Qiq launched a hunger strike 72 days ago to protest his detention without trial.
Mayors of Arab communities opposes plan, say they will not cooperate unless all demolition orders are frozen.
Hamas confirms field commander among dead in second tunnel incident in as many weeks.
Hamas officials did not provide details of the incident, saying only that the scene had been closed off.
'Fatah's strategy with Israel has failed and Hamas has also not been providing answers,' senior Fatah official says ahead of meeting with Khaled Meshal.
Israel will use the construction to undermine Al-Aqsa, 'Judaize' the Old City, Palestinian religious affairs minister says.
Many Ramallah residents believe new restrictions are intended as collective punishment against the primary center of Palestinian life in the West Bank.
Closure of Palestinian economic, political hub comes after shooting that wounded three Israeli soldiers.
'All their claims about assistance are lies,' Moussa Abu Marzouk says in private conversation, adds that he doubts Iranian reports that aid vessels sent to Gaza disappeared en route or were seized.