US Secretary of State Marco Rubio has inaugurated a contentious archaeological tourism site led by an Israeli settler group in occupied East Jerusalem.

America's top diplomat was a guest of honour at the opening of the so-called 'Pilgrimage Road', a tunnel excavated under Palestinian homes next to Jerusalem's Old City.

The opening ceremony took place at the City of David, a biblical tourism site operated by the Elad settler organisation in the Palestinian neighbourhood of Silwan.

Mr Rubio's presence was condemned by Palestinian rights groups as giving US backing to Israel's 'grip of settlement' close to Jerusalem's most sensitive holy sites.

Residents of Silwan have for years faced eviction orders and home demolitions to make way for Jewish settlements and the expansion of the archaeological park, according to rights groups. Settlements are illegal under international law.

Mr Rubio described the excavation as 'perhaps one of the most important archaeological sites on the planet', stating it has significant meaning to people in the United States. He acknowledged the political sensitivities but emphasized the site's archaeological value.

Silwan resident Fakhri Abu Diab criticized Rubio's visit, alleging it supported extremist actions by the Israeli government and disregarded Palestinian history. He highlighted the ongoing struggles faced by local residents, who are subjected to home demolitions and evictions, claiming they are caught in a cycle of displacement backed by such international visits.

The City of David has been operated by Elad since the early 2000s, with allegations of land appropriation and pushing for the eviction of Palestinian families detailed in a recent UN report.

According to the Israeli campaign group Peace Now, the excavation symbolizes recognition of Israeli sovereignty over contested areas of Jerusalem. This reinforces concerns regarding the preservation of Jerusalem's diverse religious significance and the rights of its inhabitants.