Addressing an open session of the parliament in Tehran on Tuesday, Ali Larijani, said the move was in violation of United Nations Security Council resolutions and those passed by the UN General Assembly.
Almost all countries in the world have also denounced the embassy relocation, he added.
As for the massacre of Palestinians in Gaza, Larijani denounced it and said it would remain in history as a disgrace for the Zionist regime and the US.
The Gaza Health Ministry said the Palestinian death toll in Gaza border protests rose to 58, including 57 people killed by Israeli army fire and a baby who died from tear gas inhalation.
The ministry said six of those killed by gunshots were minors.
It said more than 2,700 people were injured Monday, including 1,360 by live fire. Of the wounded, 130 are in serious or critical condition.
On Monday, tens of thousands of Palestinians rallied near Israel's border fence to protest a blockade of their territory and the move of the US Embassy from Tel Aviv to al-Quds that day.