Iran leader urges Muslims to block 'doomed' Trump peace plan

Iran's supreme leader has called on all Muslims to support the Palestinian people in their opposition to the Trump administration's "deal of the century" Middle East peace plan.

Ayatollah Ali Khamenei, in a letter Saturday marking the Islamic hajj pilgrimage, said the still-unreleased US plan was a "ruse" that's "doomed to failure."

He also called for "active participation" in efforts to block the US plan, which faces deep skepticism from the Palestinians because of policies they see as biased toward Israel.

The Trump administration plan centres on a $50 billion Palestinian investment and infrastructure proposal, but avoids core political issues that are key to resolving the dispute.

The US president broke with decades of international consensus by recognising the contested city of Jerusalem as the capital of Israel.

He has also cut hundreds of millions of dollars in aid for Palestinians and shut their de facto embassy in Washington.

This year's Hajj pilgrimage in Saudi Arabia comes amid heightened tensions in the nearby Persian Gulf between the US and Iran.

Agencies contributed to this report.