The demonstrators condemned the new agreement and rejected any normalization with the Zionist regime, Arabi21 website reported.
Amman and Tel Aviv recently reached a water-for-energy agreement.
Under the deal, Jordan would receive 200 million cubic meters of desalinated water from the occupying regime of Israel, in return for 600 megawatts of electricity generated from a solar energy plant in Jordan.
The participants in the rally said the deal means moving towards normalizing ties with Israel while it continues to occupy the Palestinian territories.
They also warned that the deal would force Jordan to be dependent on the Tel Aviv regime.
The demonstrators also chanted slogans condemning any normalization with Israeli and against the Arava valley agreement.
Amman and Tel Aviv on October 26, 1994, signed a peace treaty in a ceremony held in the Arava valley, north of Eilat and near the Jordanian border.