Israel has been stung by comments from US Secretary of State John Kerry that it could face international isolation.
Opponents to the release of the first 26 of 104 Palestinian prisoners before peace talks resume have 48 hours in which to appeal.
Prime Minister Benjamin Netanyahu held out the prospect on Sunday of further Israeli strikes inside Syria.
Benjamin Netanyahu has curbed building projects in Jewish settlements, say media reports, in a bid to help the US revive peace talks with Palestine.
Israel moved ahead with plans to build 3 000 settler homes in one of the most sensitive areas of the West Bank.
Israel's Defence Minister Ehud Barak has played down speculation that Israel intends to strike Iranian nuclear facilities.
Israeli Gilad Shalit has been freed after years as a Hamas prisoner, as hundreds of Palestinians exchanged for him received a hero's welcome in Gaza.
Up to 300 000 take part in Tel Aviv, 50 000 in Jerusalem and 40 000 in Haifa in Israel's biggest demonstration.
Benjamin Netanyahu said he would set forth his view of a Middle East peace on Tuesday and reaffirmed Israel would never return to its old borders.
Israeli Defence Minister Ehud Barak broke away from his centre-left Labour Party on Monday.